Silver continued its upward trajectory with December contracts rising Rs 1,119 or 0.77% to Rs 1,46,677 per kilogram.
However, in early international trading, gold prices fell slightly, pressured by a strengthening US dollar, as investors waited for fresh signals on the interest rate outlook ahead of the US Consumer Price Index (CPI) report, expected later this week.
Spot gold fell 0.3% to $4,082.95 an ounce, while U.S. gold futures rose 0.8% to $4,097.40 an ounce in December. The US dollar index gained 0.1%, making gold more expensive for holders of other currencies and dampening demand.
Markets have almost fully priced in a 25 basis point rate cut from the US Federal Reserve at its next meeting. Lower interest rates generally favor gold because they lower the opportunity cost of holding non-performing assets.
Despite the recent dip, gold prices have risen about 56% this year, hitting a record $4,381.21 an ounce on Monday, driven by geopolitical tensions, expectations of monetary easing and central bank purchases. Geopolitical developments continue to influence sentiment. US President Donald Trump plans to discuss China’s oil purchases from Russia at an upcoming meeting with Chinese President Xi Jinping, as Russia reportedly prepares for a possible summit between President Vladimir Putin and Trump. On the ETF front, holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.59% to 1,052.37 tonnes on Wednesday, compared with 1,058.66 tonnes the day before.
Gold rates in physical markets
-Delhi: 22 carat gold: Rs 91,792/8 g | 24-carat gold: Rs 98,736/8 grams
-Mumbai: 22 carat gold: Rs 91,640/8 g | 24-carat gold: Rs 98,576/8 grams
-Chennai: 22 carat gold: Rs 90,560/8 g | 24-carat gold: Rs 97,368/8 grams
-Hyderabad: 22 carat gold: Rs 90,616/8 g | 24-carat gold: Rs 97,376/8 grams
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