Gold prices in the domestic market rose to Rs 51,280 for 10 grams of 24-carat gold on Tuesday amid festive cheer, Treasury yields declining and the US dollar moving lower than its level. The price of gold surged has gone up to Rs 47,000 for 10 grams of 22 carat gold as against Rs 4,650 on Monday. One gram of 24 carat gold today costs Rs 5,128 as against Rs 5,073 on Monday. The silver was trading at Rs 57,400 per kg, around Rs 1,000 more than yesterday.
On Monday, gold rates at MCX rose 0.07 per cent, touching an intraday high of around Rs 50,130 per 10 grams at 1.38 pm. Silver prices were also up 1.44 per cent.
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In the international market, gold prices firmed after dollar weakened. The experts haven’t ruled out the possibility of a volatile market due to Fed’s aggressive monetary policy stance. Spot gold rose 0.3 per cent to $1,663.99 per ounce. Yields on US debt instruments such as the 10-year note, and 30-year bonds have been rising as the Federal Reserve has raised interest rates at each of the last FOMC meetings since March of this year. On Monday, US treasury notes declined by 0.87 points moving the yields from 3.829 per cent to 3.642 per cent.
Domestic prices
In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,110 per 10 grams, while 22-carat gold is trading at Rs 46,850, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 51,280 and Rs 47,000 per 10 gm, respectively.
In Chennai, 24-carat and 22-carat gold are trading at Rs 51,330 and Rs 47,050, respectively. It is to be noted that gold prices vary from city to city and depend on taxes and duties levied by the state government.
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| Cities | 22-Carat Gold Rates | 24-Carat Gold Rates |
| Chennai | Rs 47,050 | Rs 51,330 |
| Mumbai | Rs 46,850 | Rs 51,110 |
| Delhi | Rs 47,000 | Rs 51,280 |
| Kolkata | Rs 46,850 | Rs 51,110 |
| Bangalore | Rs 46,900 | Rs 51,160 |
| Hyderabad | Rs 46,850 | Rs 51,110 |
On the Multi Commodity Exchange, gold contracts for December delivery traded higher by Rs 205 or 0.41 per cent at Rs 50,399 per 10 gram in a business turnover of 17,446 lots.
Eye on future
Though gold is strengthening amid a broadly weaker US dollar, strategists feel that the yellow metal stays immersed in a strong downtrend with no respite in the coming months. The trade too is down considering the global factors. The risk of capitulation remains prevalent for the yellow metal in October, with strong data continuing to point to a more aggressive Fed rate path ahead, experts and analysts have said.
The experts added that considering the increase in inflation’s persistence this cycle, a restrictive regime may last longer than historical precedents with the Fed likely to keep rates elevated for some time. In the domestic markets too, the demand is muted. Domestic experts feel there can be slight upward movement due to the festive rush, but it will be more or less be flat.
