Gold prices surged nominally on Thursday in the domestic markets even after US Fed rate hike, which limited further spike in price of the yellow metal. On November 3, the price of 10 grams of 24-carat gold is Rs 51,120. The price of 10 grams of 22-carat gold is Rs 46,860 on average. One kilogram of silver can be purchased for Rs 58,100.
In the international market, gold tumbled during Fed Chair Jerome Powell's announcement to raise rates by 75 basis points for the fourth time in a row. The latest hike means that the Fed has already raised rates by 375 bps since March, bringing the key policy rate to a range between 3.75 per cent -4 per cent. Following the announcement, December Comex gold futures dropped to $1,639.70.
On Thursday, spot gold price went up by 0.2 per cent to $1,638.32 per ounce, after registering a fall of 0.8 per cent on Wednesday. US gold futures fell 0.6 per cent to $1,640.70. The dollar index edged 0.2 per cent lower, after touching its highest level since Oct. 24 earlier at 112.19.
Domestic prices
Gold prices change daily due to excise duty, state taxes, and making charges, which vary from state to state. On Wednesday, 10 grams of 24-carat gold in Mumbai and Kolkata can be bought and sold at Rs 51,120. In Delhi, the same amount of gold can be bought at Rs 51,270 in New Delhi, whereas in Chennai, one can buy it for Rs 51,730.
The prices for 22-carat gold in Mumbai, Kolkata, Delhi, and Chennai are Rs 46,680, Rs 46,680, Rs 47,010, and Rs 47,270, respectively.
| Cities | 22-Carat Gold Rates | 24-Carat Gold Rates |
| Chennai | Rs 47,270 | Rs 51,730 |
| Mumbai | Rs 46,680 | Rs 51,120 |
| Delhi | Rs 47,010 | Rs 51,270 |
| Kolkata | Rs 46,680 | Rs 51,120 |
| Bangalore | Rs 46,910 | Rs 51,170 |
| Hyderabad | Rs 46,680 | Rs 51,120 |
Gold in near future
Bullion prices have fluctuated throughout this year, hitting an over two-year low in recent times as rising yields drove up the opportunity cost of holding gold. The metal has largely lost its safe-haven status this year, and also appears to have failed as an inflation hedge. With US inflation staying much above the expected level, rising interest rates are expected to put extra pressure on bullion prices in the near-term.