Gold, silver prices today surge to Rs 51,000 in early trade, global rates climb up due to softer dollar

Prices of gold and silver prices surged on Friday, September 9, by a dip in the US dollar, experts said. In the domestic market, 10 grams of yellow metal (24-carat) is available at Rs 51,000, up Rs 270, while the price for 22-carat is at Rs 46,750, up Rs 250 from yesterday. Silver prices increased by Rs 1,400 per kg, with the metal trading at Rs 54,200.   

In the global market, spot gold rose 0.4 per cent to $1,713.62 per ounce as of 0110 GMT, while US gold futures were up 0.3 per cent at $1,724.90. On Friday, the dollar index was down 0.3 per cent, which is its lowest this week.  

Domestic prices 

In the national capital Delhi, the gold price for 24 carats (10 grams) is Rs 51,150 while 22 carat (10 grams) is Rs 46,900. In Kolkata, 24-carat gold (10 grams) is available for Rs 51,000, while 22 carat (10 grams) is Rs 46,750. On the other hand, the price of 24-carat gold (10 grams) in Mumbai is Rs 51,000, while 22-carat gold (10 grams) is Rs 46,750. In Chennai, 24-carat gold (10 grams) is available for Rs 51,650, and 22 carat (10 grams) is available for Rs 47,350. 

Also Read: Gold, silver prices today dip after three days, global rates under pressure over strong dollar, Treasury yields

Table 2: Gold price in top cities 

Gold prices and futures 

In the last few weeks, gold prices witnessed a vertical drop after Federal Reserve (Fed) chair Jerome Powell gave a hawkish speech to tame inflation. Powell said he is strongly committed to bringing price stability with odds of lower sacrifice in overall demand against prior instances of fighting inflation. The US central bank is expected to raise the fed funds rate by another 75 basis points on September 21, which would again affect the gold prices globally. Higher interest rates increase the opportunity cost of holding the non-yielding bullion and boost the dollar. 

The scenario is similar in other countries. On Thursday, the European Central Bank raised its key interest rates by 75 basis points and promised further hikes to combat inflation.