Gold opens weak, down by Rs 10 in early trade; silver at Rs 62,100/kg

Gold on Wednesday opened Rs 10 down from previous day's closing rate with 10 gram of 24-carat of the precious metal trading at Rs 51,920

Gold on Wednesday opened Rs 10 down from previous day's closing rate, with 10 gram of 24-carat gold trading at Rs 51,920. Ten grams of 22-carat gold is trading at Rs 47,590. 

Bullion is used as a hedge against inflation, but higher interest rates increase the opportunity cost of holding the non-yielding asset.

Meanwhile, silver opened higher on Wednesday, trading at Rs 62,100 per kg, after an increase of Rs 200. 

The change in the precious metals' prices also came after the World Bank slashed its 2022 global growth forecast on Tuesday by nearly a third to 2.9%.

The price of 10 gram of 24 carat gold in Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata is Rs 51,920 for the day. Meanwhile, the price of 10 gram of 22 carat gold in Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata is Rs 47,590.

In Chennai, 10 gram of 24-carat and 22-carat gold is trading at Rs 52,050 and Rs 47,710 respectively on Wednesday.

Spot gold was down 0.2% at $1,848.75 per ounce, as of 0302 GMT, while U.S. gold futures were flat at $1,851.20.

The price of 1 kg of silver in Delhi, Mumbai and Kolkata is Rs 1. In Chennai, Bengaluru and Hyderabad, the metal is trading at Rs 67,700 per kg for the day.

Spot silver eased 0.3% to $22.14.

(With inputs from Reuters)