Gold and silver prices fell in early trading on Tuesday with 10 grams of the yellow metal (24 carats) trading at Rs 51,430 after falling Rs 170. On the other hand, silver was trading at Rs 54,000 per kg after falling by Rs 800. .
Ten grams of 22-carat gold is trading at Rs 47,150 on Tuesday after a decline of Rs 150.
In Mumbai and Kolkata, 24-carat gold is sold at Rs 51,430 per 10 grams, while 22-carat gold is quoted at Rs 47,150 in the respective cities. In Delhi, 24 and 22 karat gold is quoted at Rs 51,600 and Rs 47,300 per 10g respectively.
In Chennai, 24 and 22 carat gold is trading at Rs 52,000 and Rs 48,650 respectively.
Gold prices rose in early Asian hours on Tuesday as the dollar retreated from a 20-year high, offsetting pressure from expectations that the US Federal Reserve would keep interest rates higher for more. Time to fight inflation.
Spot gold rose 0.1 percent to $1,739.14 an ounce by 0058 GMT. Prices hit a one-month low of $1,719.56 on Monday, following aggressive comments from Fed Chairman Jerome Powell at the Jackson Hole symposium on Friday. US gold futures rose 0.1 percent to $1,751.7.
While gold is seen as a safe bet during economic uncertainty, interest rate hikes increase the opportunity cost of holding the asset without yield.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.38 percent to 980.61 tonnes on Monday from 984.38 tonnes on Friday.
A kg of silver was quoted at 54,000 rupees in Delhi, Mumbai and Kolkata. In Chennai, Bengaluru, Hyderabad and Kerala, silver is sold for Rs 60,000 per kg.
Spot silver fell 0.1 percent to $18.73 an ounce.
(With input from Reuters)