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Gold prices today dip further by Rs 700 across states; Check revised rates here

Gold prices today dip further by Rs 700 across states; Check revised rates here

Gold price today was at Rs 51,230 for 10 grams. In the international market, gold benchmarks fell to a near one-month low as the demand for the US dollar grew stronger.

Gold prices can further drop as globally, investors are extensively choosing the US Dollar over gold as experts feel that US Fed’s rate revision will ultimately bring down the inflation levels-16:9 Gold prices can further drop as globally, investors are extensively choosing the US Dollar over gold as experts feel that US Fed’s rate revision will ultimately bring down the inflation levels-16:9

Gold prices in the domestic markets slumped yet again for the second consecutive day in a choppy trade session early on Wednesday. The yellow metal prices for 24 carats were at Rs 51,230 for 10 grams on Wednesday, which is Rs 700 less than yesterday.  For 10 grams of 22-carat gold, the price was at Rs 47,000 on Wednesday, which is a Rs 600 drop on an average across cities as compared to Tuesday rates. The silver prices were also down and fell by Rs 300. It was trading at Rs 54,000 per kg.  

In the international market, gold benchmarks fell to a near one-month low as the demand for the US dollar grew stronger along with rising inflationary fears due to the European gas crisis. Gold futures fell 0.1 per cent to $1,759.25 an ounce, while spot gold fell 0.1 per cent to $1,746.33 an ounce by 21:41 ET (01:41 GMT). Globally, investors are extensively choosing the US Dollar over gold as experts feel that US Fed’s rate revision will ultimately bring down the inflation levels to their 2 per cent target. US gold futures eased 0.2 per cent to $1,758.20. 

Domestic prices 

Global and domestic gold prices fluctuate due to various reasons as gold is considered the hedge against inflation. Prices have traditionally rallied in the past during slowdowns and times of high inflation. But in recent years, the correlation has broken down. In the domestic market, the gold price for 24-carat gold (1 gram) is Rs 5,123, while the 22-carat gold price (1 gram) is Rs 4,700 on Wednesday as compared to Rs 4,760 on Tuesday.  

Check the price of gold in your city here:

Cities  22-Carat Gold Rates (Aug 24) 24-Carat Gold Rates (Aug 24)

Chennai

Rs 48,000 Rs 52,400 
Mumbai  Rs 47,000  Rs 51,230 
Delhi

Rs 47,150

Rs 51,440
Kolkata Rs 47,000 Rs 51,230 
Bangalore Rs 47,050  Rs 51,330
Hyderabad  Rs 47,000 Rs 51,230 
Ahmedabad Rs 47,050 

Rs 51,330 

MCX gold October futures fell 0.1 per cent to touch the intraday low of Rs 51,110 per 10 grams. For silver future, it was 0.6 per cent lower at Rs 54,655 per kilogram. 

Experts speak 

Since the beginning of 2022, gold has lost nearly all of its gains due to a rising dollar. The US interest rates have pulled traders out of the yellow metal, which has affected the prices. The main focus is now on Fed Chair Jerome Powell’s Jackson Hole Symposium speech this Friday, which is expected to give the next steps for the monetary policy. 

Analysts and experts believe that as rising interest rates make bonds and other fixed-income investments more fluid and attractive, money starts flowing into higher-yielding investments (such as bonds and money market funds). Therefore, gold loses its shine. In other words, when the Fed rates go up, gold weakness is evident. Traders across stock markets are expecting Powell to maintain his hawkish stance, which will herald sharper interest rate hikes this year, affecting gold prices further.

 

 

Published on: Aug 24, 2022, 10:28 AM IST
Posted by: Basudha Das, Aug 24, 2022, 9:17 AM IST