Gold falls Rs 170 per 10 gm; silver down by Rs 800, trading at Rs 54,000

Gold and silver prices fell in early trade with 10 gram of yellow metal (24-carat) trading at Rs 51,430 after a decline of Rs 170

Gold and silver prices fell in Tuesday's early trade with 10 gram of yellow metal (24-carat) trading at Rs 51,430 after a decline of Rs 170. On the other hand, silver was trading at Rs 54,000 per kg after a fall of Rs 800.

Ten gram of 22-carat gold is trading at Rs 47,150 on Tuesday after a decrease of Rs 150.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,430 per 10 gram, while 22-carat gold is trading at Rs 47,150 in the respective cities. In Delhi, 24-carat and 22-carat gold is trading at Rs 51,600 and Rs 47,300 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 52,000 and Rs 48,650, respectively.

Gold prices inched up in early Asian hours on Tuesday, as the dollar eased off a 20-year high, offsetting pressure from expectations of the US Federal Reserve keeping interest rates higher for longer to combat inflation.

Spot gold  ticked 0.1 per cent higher to $1,739.14 per ounce, as of 0058 GMT. Prices hit a one-month low of $1,719.56 on Monday, following Fed Chair Jerome Powell's hawkish remarks at Jackson Hole symposium on Friday. The US gold futures rose 0.1 per cent to $1,751.7.

While gold is considered a safe bet during economic uncertainty, interest rate hikes increase the opportunity cost of holding the non-yielding asset.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.38 per cent to 980.61 tonnes on Monday from 984.38 tonnes on Friday.

One kg of silver was trading at Rs 54,000 in Delhi, Mumbai, and Kolkata. In Chennai, Bengaluru, Hyderabad, and Kerala, silver is selling at Rs 60,000 per kg.

Spot silver dipped 0.1 per cent to $18.73 per ounce. 

(With inputs from Reuters)