Gold prices are trading at substantially low prices, almost near a two-year dip in rates. Given the rising inflation, India’s gold demand is likely to fall in the months of October to December by around a quarter, compared to last year. The increasing cost of living is deflating the demand for gold, the World Gold Council (WGC) stated on Tuesday. India is the second-largest consumer of the precious metal in the world. Falling demand in the country could create further pressure on the rates. The price of gold has already been under strain due to the US Federal Reserve Bank’s aggressive interest rate hike (meant to curb inflation in the US). A rise in interest rates increases the opportunity cost of holding gold, a zero-yielding asset. Prices of gold are likely to change based on the outcome of the Fed’s policy meeting on interest rates taking place on November 1-2.
On MCX India, Gold futures today traded at Rs 50,280 as of 10:22 AM, down by 0.08%. Silver futures were on the rise, in the green by 0.99%, trading at Rs 58,249. In the retail market, gold traded at Rs 50,180, recording a price drop of Rs 660 from Monday for 10 grams of the 24-carat variety. The 22-carat variety of gold was also down by Rs 600, retailing at Rs 46,000 for ten grams. A kg of silver retailed at Rs 58,300, up by Rs 800 from October 31.
Gold was the most expensive in the South Indian city of Chennai, maintaining a price level of Rs 51,330 for the 24-carat variety and Rs 47,050 for the 22-carat type. In Delhi, 24-carat gold was sold at Rs 50,350 per 10 grams, while 22-carats traded at Rs 46,150. In Bengaluru, gold prices stood at Rs 50,230 for 24-carat variety and Rs 46,050 for 22 carats. The price of the yellow metal was the same for Kolkata, Hyderabad, and Mumbai. Ten grams of 22-carat of gold were available for Rs 46,000, while the same quantity of 24-carat gold retailed at 50,180.
In India, prices of gold change from one state to another owing to changes in tax rates and other charges levied by state governments.
Read all the Latest Business News here