The price of gold rose 270 rupees per 10 grams in early trading on Friday, with the yellow metal (24 carats) trading at 51,820 rupees. The price of silver, meanwhile, increased from Rs 400 to Rs 55,400 per kilogram.
Ten grams of 22 karat gold is trading at Rs 47,500 on Friday after rising by Rs 250.
In Mumbai and Kolkata, 24 karat gold sells for Rs 51,820 for 10 grams, while 22 karat gold trades at Rs 47,500 in the respective cities. In Delhi, 24 karat and 22 karat gold are trading at Rs 51,980 and Rs 47,650 for 10g, respectively.
24k and 22k gold in Chennai are trading at Rs 52,690 and Rs 48,300, respectively.
U.S. gold prices were subdued on Friday as investors took a cautious stance ahead of Federal Reserve Chairman Jerome Powell’s speech to a meeting of top central bankers, which will be scrutinized to get advice on interest rate increases.
Spot gold edged down 0.2% to $1,755.09 an ounce, by 0118 GMT. US gold futures fell 0.1% to $1,769.2.
U.S. Fed officials on Thursday did not commit to how big an interest rate hike they will approve at their Sept. 20-21 meeting, but continued to insist they will drive rates up and hold them there until inflation comes down. Higher interest rates increase the opportunity cost of holding non-performing bullion, while boosting the dollar.
The U.S. economy contracted at a more subdued pace than initially thought in the second quarter as consumer spending cushioned some of the slowdown from a sharp slowdown in inventory accumulation, dispelling fears that a recession is underway.
China’s net gold imports via Hong Kong hit a nine-month high in July, data showed on Thursday, with banks buying bullion as Beijing struggles to revive an economy hit by a resurgence of coronavirus cases. covid
Meanwhile, one kg of silver was trading at Rs 55,400 in Delhi, Mumbai and Kolkata. In Chennai, Bengaluru, Hyderabad and Kerala, silver sells for Rs 61,100 per kg.
Spot silver fell 0.4% to $19.2 an ounce, platinum rose 0.2% to $882.79 and palladium rose 0.2% to 2,151.55 $.
(With contributions from Reuters)