Gold prices have declined this year due to high interest rates, which is not affecting gold prices. Gold positions itself as a hedge against uncertainties such as inflation, with the US Federal Reserve taking an aggressive stance to control inflation. Gold prices on Wednesday gained in a narrow range due to a weakening dollar. Spot gold was up 1 basis point at $1,773.17 an ounce by 0247 GMT, according to Reuters. India The impact of rising retail prices was also felt.
In the retail market, gold was trading at Rs 54,000 for 10 grams of the 24-carat variety and Rs 49,500 for 10 grams of the 22-carat variety, higher than Tuesday’s levels. However, gold futures on Multi Commodity Exchange (MCX) India were trading at Rs 53,720, down 0.07 per cent at 10.20 am today. Silver futures, which was trading at Rs 65,479, was 0.10 per cent in the green. Silver prices have declined by Rs 500 per kg in the retail market. The price of one kg of silver today was Rs 65,500 from Tuesday’s level.
Among major cities in India, the yellow metal was cheapest in Kolkata, Hyderabad and Mumbai. These three cities recorded similar prices for 24 carat and 22 carat types of the precious metal. Here 24 carat gold was sold at Rs 54,000 and 22 carat gold at Rs 49,500. Gold was the costliest in the southern Indian city of Chennai, where the 24-carat yellow metal was priced at Rs 54,720. Here the price of 22 carat gold was Rs 50,160. In Bengaluru, the capital of Karnataka, the price of 24 carat gold was Rs 54,050 and that of 22 carat was Rs 49,550. In Delhi, 24K gold was trading at Rs 54,150, while 22K gold was selling at Rs 49,650 per 10 grams.
Variation in gold prices is observed in cities falling in different states of India due to difference in tax rates and other charges levied by the state governments. The cost of gold jewelery is likely to be higher still as the making charges are included in the cost of items requiring craftsmanship.
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