India, the world’s second-biggest consumer of gold after China, increased the base import price of the yellow metal. The price rise is in line with the cost hike in the international market, reported The Mint. The base import prices of gold, silver, and edible oils are revised once every two weeks. The price of gold has been faltering for a few months now due to speculations around how the US Federal Reserve will modify its stance on the interest rate hikes.
Gold futures today traded at Rs 53,035 as of 10:56 AM, up by 0.55 percent, on MCX (Multi Commodity Exchange) India. Silver futures, which traded at Rs 62,000, were also in the green by 0.67 percent. In the retail market, gold traded at Rs 52,360, recording an upward price movement of Rs 210 from Tuesday’s price for 10 grams of the 24-carat type. The 22-carat variety of gold also recorded a price hike of Rs 200, retailing at Rs 48,000 for ten grams. The price of a kg of silver fell by Rs 700 compared to November 1 levels and retailed at Rs 62,000.
Among metropolitan Indian cities, gold was the costliest in Chennai, where 24-carat gold was being retailed at Rs 54,110. The price of the 22-carat type of the yellow metal was Rs 49,600 here. In the nearby city of Bengaluru, gold prices stood at Rs 52,410 for 24-carat variety and Rs 48,050 for 22 carats. In the national capital, Delhi, 24-carats traded at Rs 52,510 while 22-carat gold was sold at Rs 48,150 per 10 grams. The price of both types of gold was consistent in Kolkata, Hyderabad, and Mumbai. In these cities, ten grams of 22-carat gold were available for Rs 48,000 while the same quantity of 24-carat gold retailed at 52,360.
State-to-state variation in gold prices in India is observed due to the changes in tax rates and other charges imposed by the state governments. At a jeweller’s the price of gold jewellery might be further inflated as that involves making charges.
Jigar Trivedi, Senior Research Analyst – Currencies & Commodities, Reliance Securities, said: “Amid rise in the geo-political risk, the yellow metal at the Comex rebounded to $1,786 an ounce. Investors sought renewed safe haven exposure after a missile of Russian make fell in the eastern part of Poland. The incident marks the first time that Russian weapons have struck NATO territory, with Ukrainian President Volodymyr Zelenskyy calling the strike a “very significant escalation” of the war. Since then, the yellow metal fell toward $1,770 an ounce, easing from a three-month high as investors took some profits off the table, while assessing the US rates outlook and the potential for a wider geopolitical conflict in Europe. Weakness in the dollar also benefited gold prices, after data showed US producer inflation hit a 14-month low in October. The reading, coupled with softer-than-expected consumer inflation data released last week, saw markets ramping up bets that U.S. inflation had eased. Outlook is still flattish to positive in the yellow metal. MCX Gold December futures may rise to Rs. 53,100 per 10 gram.”
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