Srinagar, Mar 17: Gold prices have lately seen a lot of ups and downs, though mostly indicating signs of recovery. Gold has been trading below Rs 45,000 per 10 gram since the last 10 trading sessions.
Gold price on Wednesday fell to Rs 48,160 from Rs 48,170, while silver price was trending at Rs 67,600 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold is at Rs 44,150 per 10 gm, while in Chennai it fell to Rs 42,270. In Mumbai, the rate was Rs 43,840 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 46,110 per 10 gm.
Gold edged lower on Tuesday, pressured by an uptick in the dollar, as investors awaited policy cues from a two-day US Federal Reserve meeting.
Spot gold fell 0.2% to $1,729.21 per ounce. U.S. gold futures were down 0.1% at $1,727.20.
“Gold should have found a bottom but the big risk is the Fed, and if the Fed does not push back against the bond market, you could see that one-day of panic selling (in gold),” said Edward Moya, senior market analyst at OANDA.
The US Federal Open Market Committee’s two-day meeting ends on Wednesday. The central bank is expected to reiterate its pledge to keep interest rates pinned near zero until the economy reaches full employment.
The dollar rose 0.1%, increasing the cost of holding gold in other currencies. Gold could rise with U.S. Treasury yields in the next few months, as a move closer to 2% in yields could derail relentless stock market buying and restore gold’s appeal as a safe haven, Moya added.