On Friday, the price of gold rose by Rs 250 from the previous day’s closing to Rs 52,310 for a gramme of 24-carat gold. In the meantime, a gramme of 22-carat gold costs Rs 47,950. Although gold is utilised as an inflation hedge, rising interest rates raise the opportunity cost of owning the non-yielding asset.
Silver, however, began marginally higher on Friday, trading at Rs 62,200 per kilogramme, up to Rs 100 from the previous day. For the day, a gramme of 24-carat gold costs Rs 52,310 in Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata. In Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata, a gramme of 22-carat gold costs Rs 47,950.
On Wednesday in Chennai, a gramme of 24-carat gold and a gramme of 22-carat gold were trading at Rs 52,430 and Rs 48,060, respectively. Silver, on the other hand, is selling for Rs 62,200 a kilogramme in Mumbai, Delhi, and Kolkata. The precious gold is selling for Rs 68,000 per kilogramme in Chennai, Bangalore, Hyderabad, and Kerala.
According to a government source, India’s gold imports in May increased 677 per cent year on year to the highest level in a year, as price corrections right before a critical festival and wedding season encouraged retail jewellery sales.
Increased imports by the world’s second-largest bullion user might bolster benchmark prices, but they could also widen India’s trade imbalance and put pressure on the rupee.
Gold is set to decrease for the week as Treasury rates increase, with investors looking for clues on the future of monetary policy from important monthly US inflation data expected later in the day.
As of 0038 GMT, spot gold was down 0.1per cent at $1,846.22 per ounce, while U.S. gold futures were down 0.2 per cent at $1,849.10. Silver has down 0.1 per cent to $21.65 per ounce on the spot market.