Gold became more expensive in early trading on Friday as the price of the yellow metal rose by Rs 230 from the previous day’s rate with 10 grams of 24 karat gold selling at Rs 51,990. time, 10 grams of 22 karat gold, after falling by Rs 200, is trading at Rs 47,650.
Silver prices, on the other hand, fell by Rs 300, with the precious metal trading at Rs 60,200 per kg.
Gold prices were flat on Friday, but on track for their second consecutive weekly decline as concerns over major central banks potentially implementing steep interest rate hikes to target runaway inflation weigh on the bullion demand.
Spot gold was last up 0.1% at $1,824.72 an ounce at 0215 GMT, after hitting a one-week low of $1,820.99 earlier in the session. US gold futures fell 0.2% to $1,825.90.
Although bullion is often seen as a hedge against inflation, higher interest rates and bond yields increase the opportunity cost of holding gold, which pays nothing.
The price of 10 grams of 24 karat gold in Delhi, Kolkata and Bangalore is Rs 51,990. While 10 grams of 22 karat gold is trading at Rs 47,650 in Delhi, Kolkata and Bangalore. In Chennai, 10 grams of 24 karat gold and 22 karat gold are 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 currently sells for Rs 66,000.