Gold prices today rise up marginally to Rs 51,000 per 10 grams, experts expect rates to remain volatile

Domestic gold prices increased marginally amid gains in the equity market. Gold prices in India on Tuesday stood at Rs 51,000, up by Rs 110 from Monday’s price, for 24-carat gold. The price for 22-carat gold was Rs 46,750 per 10 grams, up by Rs 100. Silver is being sold for Rs 53,200 per kilogram in all major cities in India, which is almost up by Rs 720 on average. 

MCX gold October futures climbed 0.33 per cent on Tuesday and touched Rs 50,495 per 10 grams. In the international market, gold prices were steady on Monday after a US jobs report showed unemployment reached new highs in August, hinting that the US Fed might relax the rate hikes and go slow. 

The gold rates on September 6:

Last month, the Fed went hawkish on interest rate hikes, which weighed on the overall gold prices. The dollar index advanced for the third week in a row and approached a fresh two-decade high of 109.97.

Gold prices in last 10 days 

Gold prices in the domestic market have shown a downward trend mostly due to rising inflation and market volatility. The recent uptick, as per experts, can lead to a renewed buying interest at lower levels as most economies in the world are showing slowdown signals. In the near term, experts feel prices may consolidate for a while, and hover around Rs 48,800 per 10 gm mark. 

Investment outlook 

Despite recent ups and downs, gold always holds its ground during high-inflation years when stock markets are volatile. Even when the currency falls in comparison to the dollar, gold acts as a hedge. It also acts as a hedge in periods of downturn, geopolitical tensions, and uncertainty. For instance, gold rose from $1,300 in late 2019 to nearly $2,100 in mid-2020. The prices started fluctuating once countries started reopening their economies, even then gold averaged higher than other asset classes.