COMMODITY MAREKT WATCH: Due to the US Federal Reserve's rate hike this week, which may put additional pressure on the precious metal, gold prices started to decline on Tuesday.
For 10 grammes of 24-carat gold, the price in India was Rs 50,200; for 10 kilos of 22-carat gold, it was Rs 45,850. The price of silver per kilogramme remained constant at Rs 56,700.
In the global commodity market, spot gold was trading at USD 1,676.80 per ounce . The price of US gold futures rose 0.5 percent to USD 1,686.70. As the US dollar and Treasury yields firmed on anticipation of a significant Fed rate hike, gold prices fell on Monday and nearly reached the 29-month low they reached on Friday.
Silver's current price on the world market was USD 19.48 for an ounce. Palladium dropped 1.5 percent to USD 2,191.75 and platinum dropped 0.1 percent to USD 918.29.
In the nation's capital, Delhi, the cost of 10 grammes of 24 carat gold is Rs 50,530, while 10 grammes of 22 carat gold is Rs 46,000. In Kolkata, 10 kilos of 24-carat gold cost Rs 50,020, while 10 grammes of 22-carat gold cost Rs 45,850.
On the other hand, Mumbai charges Rs 50,020 for 10 grammes of 24-carat gold and Rs 45,850 for 10 grammes of 22-carat gold. In Chennai, 10 kilos of 22-carat gold cost Rs 46,320 and 10 grammes of 24-carat gold cost Rs 50,530. It should be remembered that gold prices fluctuate from city to city and are influenced by state government taxes and tariffs.
Investors are anticipated to keep their caution as the US Fed is anticipated to increase interest rates by 75 basis points at the conclusion of its two-day policy meeting on Wednesday. A few market watchers anticipate that the increase may be about 100 bps in light of the US recession and inflation threats. A high interest-rate environment increases the opportunity cost of holding non-yielding bullion. The Fed's aggressive monetary strategy, which undermines non-interest-bearing assets while strengthening the US dollar, has caused bullion to decline throughout the majority of 2022.