Gold up by Rs 270 in early trade; silver rises, trading at Rs 62,200 per kg

Gold price on Friday increased by Rs 250 from the previous day's close, with 10 gram of 24-carat gold trading at Rs 52,310. Meanwhile, 10 gram of 22-carat gold is trading at Rs 47,950.

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

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

The price of 10 gram of 24 carat gold in Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata is Rs 52,310 for the day. The price of 10 gram of 22 carat gold in Delhi, Mumbai, Bangalore, Hyderabad, and Kolkata is Rs 47,950.

In Chennai, 10 gram of 24-carat and 22-carat gold is trading at Rs 52,430 and Rs 48,060 respectively on Friday.

On the other hand, silver is trading at Rs 62,200 per kg in Mumbai, Delhi and Kolkata. In Chennai, Bengalore, Hyderabad and Kerala, the precious metal is selling at Rs 68,000 per kg. 

India’s gold imports in May jumped 677 per cent from a year ago to the highest level in a year as correction in prices just before a key festival and wedding season boosted retail jewellery purchases, a government source said.

Higher imports by the world's second-biggest bullion consumer could support benchmark prices, but the surge could increase India's trade deficit and put pressure on rupee.

Gold is headed for a weekly fall as Treasury yields have risen, with investors awaiting key monthly US inflation data that is due later in the day for cues on the future of monetary policy.

Spot gold was down 0.1% at $1,846.22 per ounce, as of 0038 GMT, while U.S. gold futures eased 0.2% to $1,849.10. Spot silver has dipped 0.1% to $21.65 per ounce.