Gold prices have been under pressure due to the US Federal Reserve Bank’s aggressive interest rate hike aimed at controlling inflation in the country. The Fed increased its overnight interest rate– the rate at which banks borrow and lend from other depository institutions in the overnight market– and is expected to offer a fourth straight 75 basis-point increase at its upcoming policy meeting. On Monday, propelled by oversized US interest rates, gold price was headed for a seventh straight monthly loss, reported Moneycontrol. In India, gold futures today traded at Rs 50,315 as of 10:30 AM, up by 0.17%, on MCX India. Silver futures, on the other hand, dipped by 0.03%, trading at Rs 57,464. In the retail market, gold traded at Rs 50,840, recording a price drop of Rs 160 from Sunday for 10 grams of the 24-carat variety. The 22-carat variety of gold was being sold at Rs 46,600 for the same quantity, recording a price drop of Rs 150. A kg of silver retailed for the same price as Thursday, stable at Rs 57,500.
Gold was the most expensive in the South Indian city of Chennai, maintaining a price level of Rs 51,440 for the 24-carat variety and Rs 47,150 for the 22-carat type. In Delhi, 24-carat gold was sold at Rs 50,990 per 10 grams, while 22-carats traded at Rs 46,750. In Bengaluru, gold prices stood at Rs 50,910 for 24-carat variety and Rs 46,650 for 22 carats. Gold recorded equivalent price levels in Kolkata, Hyderabad, and Mumbai. Ten grams of 22-carat of gold were available for Rs 46,600 while the same quantity of 24-carat gold retailed at Rs 50,840.
In India, prices of gold change from one state to another owing to changes in tax rates and other charges levied by state governments.
Gold, often viewed as a hedge against inflation, is suffering as the opportunity cost of holding the zero-yielding asset goes up with interest rate hikes. All eyes are on the November 1-2 policy meeting of the US Federal Reserve. Spot gold stood at $1,642.55 per ounce as of 0331 GMT. US gold futures were at a marginally higher $1,645.00.
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