Gold, silver rates rise in early trade; yellow metal at 51,550 per 10 gm

Gold became dearer by Rs 320 per 10 gram in Thursday's early trade as the yellow metal (24-carat) is trading at Rs 51,550. The price of silver, meanwhile, went up by Rs 100 to Rs 55,000 per kg.

Ten gram of 22-carat gold was trading at Rs 47,250 on Thursday after an increase of Rs 250.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,550 per 10 gram, while 22-carat gold is trading at Rs 47,250 in the respective cities. In Delhi, 24-carat and 22-carat gold is trading at Rs 51,710 and Rs 47,400 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 52,420 and Rs 48,050, respectively.

Gold prices edged higher on Thursday as the dollar slipped, while investors looked forward to a speech by U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole symposium for clues on interest rate hikes and the health of the economy. Spot gold was 0.1 per cent higher at $1,753.01 per ounce, as of 0110 GMT. US gold futures were up 0.3 per cent at $1,766.

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion. Gold demand in India improved last week as domestic prices dropped to a more than two-week low, while volumes were sombre in other Asian centres.

Meanwhile, one kg of silver was trading at Rs 55,000 in Delhi, Mumbai, and Kolkata. In Chennai, Bengaluru, Hyderabad, and Kerala, silver is selling at Rs 60,900 per kg.

Spot silver eased 0.2 per cent to $19.13 per ounce. 

(With inputs from Reuters)