Gold, silver rates: Gold price dips again to Rs 45,950, silver prices down to Rs 57,200 after Fed hikes interest rates

Gold prices dipped again on Thursday as the US Federal Reserve raised the key US interest rate again by 75 bps and hinted more such hikes are in the pipeline. Gold prices in India were down to Rs 50,110 for 24-carat gold (10 grams), while for 22-carat gold (10 grams) it was Rs 45,950. Silver prices were also down and were trading at Rs 57,200 per kilogram.

On Wednesday, gold prices rose after Russian President Vladimir Putin ordered a partial mobilisation. On MCX, gold futures rose from six-month lows to Rs 49,451 per 10 gram while silver gained 1 per cent to Rs 56,875 per kg.  

Also read: Gold, silver rates today: Gold price increases to Rs 46,750, silver prices down to Rs 56,600 as markets look at Fed rate-hike

In the international market, spot gold dropped 1 per cent to $1,656.97 per ounce, as of 0114 GMT. US gold futures fell 0.5 per cent to $1,667.30. Spot silver shed 1.7 per cent to $19.26 per ounce, platinum fell 1.1 per cent to $897.92 and palladium was down 0.8 per cent at $2,138.51 The dollar index reached a new two-decade peak versus major peers, making bullion more expensive for buyers holding other currencies.  

Domestic prices

In the national capital Delhi, the gold price for 24 carats (10 grams) is Rs 50,110, while 22 carat (10 grams) is available at Rs 45,950. In Kolkata, 24-carat gold (10 grams) is available for Rs 49,960, while 22 carat (10 grams) is Rs 45,800.  

On the other hand, the price of 24-carat gold (10 grams) in Mumbai is Rs 49,960, while 22-carat gold (10 grams) is Rs 45,800. In Chennai, 24-carat gold (10 grams) is available for Rs 50,730, and 22 carat (10 grams) is available for Rs 46,500. It is to be noted that gold prices vary from city to city and depend on taxes and duties levied by the state government.  

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Little recovery and then dip

Initially, gold erased its Fed-induced losses on Wednesday, jumping more than 1 per cent after Federal Reserve Chair Jerome Powell spoke about recession and peak rates following a third consecutive 75-basis-point hike on Wednesday. But early on Thursday, gold prices fell 1 per cent as the dollar rose sharply. Even though gold is seen as a hedge against inflation, rate hikes to tame inflation tend to raise the opportunity cost of holding zero-yield bullion.