Gold became dearer in Friday’s early trade, as the yellow metal’s price increased by Rs 230 from the previous day’s rate with 10 gram of 24-carat gold selling at Rs 51,990. Meanwhile, 10 gram of 22-carat gold, after a decrease of Rs 200, is trading at Rs 47,650.
The prices of silver, on the other hand, went down by Rs 300 with the precious metal trading at Rs 60,200 per kg.
Gold prices were flat on Friday but on course for their second straight weekly decline, with worries over major central banks potentially implementing big interest rate hikes to target runaway inflation weighing on bullion demand.
Spot gold was last up 0.1% to $1,824.72 per ounce at 0215 GMT, after hitting a one-week low of $1,820.99 earlier in the session. U.S. gold futures fell 0.2% to $1,825.90.
Although bullion is often seen as an inflation hedge, higher interest rates and bond yields increase the opportunity cost of holding gold, which yields nothing.
The price of 10 gram of 24-carat gold in Delhi, Kolkata, and Bangalore is Rs 51,990. Whereas, 10 gram of 22-carat gold is trading at Rs 47,650 in Delhi, Kolkata, and Bangalore. In Chennai, 10 gram of 24-carat gold and 22-carat gold is trading at Rs 52,040 and Rs 47,700 respectively.
In Delhi, Mumbai, and Kolkata, silver is trading at Rs 60,200 per kg. In Chennai, Bengaluru, Hyderabad, and Kerala, one kg of silver is currently selling at Rs 66,000.