Gold, silver prices today: Gold price slips to Rs 51,050, silver price drops to Rs 58,500 despite festive rush

Gold and silver both showed a slump in their prices higher in Indian markets on Wednesday as global investors are possibly anxious about the next steps of the US Federal Reserve after the inflation data would be out later this week. On Wednesday, one gram of 22-carat gold is available at Rs 4,680, down from Rs 4,705 a day ago. Meanwhile, an equal quantity of 24-carat gold is available at Rs 5,105, as against Rs 5,133 on Tuesday. 

On the MCX, the price of gold futures maturing on December 5 stands at Rs 50,814 per 10 grams, recording a dip of 0.60 per cent today.  

Also read: How to Invest in digital gold this festive season: 4 instruments one can look at

In international markets, the yellow metal was down 0.7 per cent at $1,682 per ounce as renewed bets of sharp rate hikes by the Fed lifted the US dollar. The dollar index rose 0.2 per cent, making gold costlier for buyers holding other currencies. In India, gold prices always depend on international prices and the performance of the Indian rupee against the US dollar. 

Domestic prices 

In Mumbai and Kolkata, 24-carat gold is selling at Rs 50,890 per 10 gram, while 22-carat gold is trading at Rs 46,650, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 51,050 and Rs 46,800 per 10 gm, respectively. 

In Chennai, 24-carat and 22-carat gold is trading at Rs 51,600 and Rs 47,300, respectively.  

Also read: This is how millennials buy gold in India 

It is to be noted that gold prices vary from city to city and depend on taxes and duties levied by the state government. 

Cities	22-Carat Gold Rates	24-Carat Gold Rates
Chennai	Rs 47,300	Rs 51,600
Mumbai	Rs 46,650	Rs 50,890
Delhi	Rs 46,800	Rs 51,050
Kolkata	Rs 46,650	Rs 50,890
Bangalore	Rs 46,700	Rs 50,950
Hyderabad	Rs 46,650	Rs 50,890

Price and performance 

Gold is considered a hedge against inflation and economic uncertainties. But rising interest rates reduce the appeal of the asset, which pays no interest. 

As per global analysts, traders are expecting another round of interest hike of a 75-basis-point rate at the Fed meeting next month. Traders are now mostly anxious about the US inflation data due later this week. As per the analysts, though US consumer price inflation is seen slowing down, Fed might continue with its hawkish policy at least for now. They added that the yellow metal is seeing a dip as upbeat US data support the dollar index and the US bond yields.

In international markets, gold prices have declined more than $350 since surging past the $2,000-mark in March, amid aggressive US monetary policy tightening.