Gold prices on October 21 were set for a decline second time this week with the US Treasury yields remaining high after strong labour market data and hawkish statements from Federal Reserve officials. While inflation has pushed up the price of almost everything, gold has remained an exception. The precious yellow metal’s prices declined for six consecutive months until September, as the dollar continued to climb and bond yields gained strength. However, gold prices in India are likely to gain and maintain momentum with Diwali and Dhanteras fast approaching.
On MCX India, gold futures today traded at Rs 49,885 as of 10:43 AM, down by 0.51%. Silver futures also dipped, going into the red by 0.89% and trading at Rs 56,148. In the retail market, gold traded at Rs 50,450, recording a price drop of Rs 110 from Thursday for 10 grams of the 24-carat variety. The 22-carat variety of gold was being sold at Rs 46,250 for the same quantity, recording a price drop of Rs 100 since Thursday. A kg of silver retailed for the same price as Thursday, stable at Rs 56,150.
In Delhi, 24-carat gold was sold at Rs 50,600 per 10 grams, while 22-carats traded at Rs 46,350. Gold was the most expensive in the South Indian city of Chennai, maintaining a price level of Rs 50,900 for the 24-carat variety and Rs 46,650 for the 22-carat variety. In Bengaluru, gold prices stood at Rs 50,500 for 24-carat variety and Rs 46,300 for 22 carats. Gold recorded equivalent price levels in Kolkata, Hyderabad, and Mumbai. Ten grams of 22-carat of gold were available for Rs 46,550 while the same quantity of 24-carat gold retailed at 50,450.
Changes in tax rates and other charges levied by state governments lead to the price of gold differing from state to state. Buyers also have to pay additional fees, such as making charges and other GST rates for jewellery made of gold.
Currently, the Fed’s focus on easing inflation, which has not been this high in the US in the past 40 years, is a significant factor pushing and pulling gold prices.
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