Gold & Silver Prices on 20th September: Gold prices fall to 50,200 rupees, silver flat at 56,700 rupees on risks of a Fed rate hike
Gold prices started falling on Tuesday largely on the back of this week’s Federal Reserve rate hike, which could put further pressure on the precious metal. Gold prices in India fell to 50,200 rupees for 24 karat gold (10 grams) while they were 45,850 rupees for 22 karat gold (10 grams). Silver prices stagnated at Rs 56,700 per kilogram.
In the international market, spot gold was trading at $1,676.80 an ounce at 0037 GMT. US gold futures rose 0.5 percent to $1,686.70. Gold prices fell on Monday and nearly touched a 29-month low on Friday as the US dollar and Treasury yields strengthened on anticipation of a sharp Fed rate hike.
In the international market, spot silver was $19.48 an ounce. Platinum fell 0.1 percent to $918.29 and palladium fell 1.5 percent to $2,191.75.
|grams||Price for 22k gold||Price for 24k gold|
|1 gram||Rs 4,585||Rs 5,002|
|10 grams||Rs 45,850||Rs 50,020|
In the national capital, Delhi, the gold price for 24k (10 grams) is Rs 50,530, while 22k (10 grams) can be purchased for Rs 46,000. In Kolkata, 24 karat (10 grams) gold is available for 50,020 rupees, while 22 karat (10 grams) is 45,850 rupees.
On the other hand, the price of 24 karat gold (10 grams) in Mumbai is 50,020 rupees while 22 karat gold (10 grams) is 45,850 rupees. In Chennai, 24 karat (10 grams) gold is available for 50,530 rupees and 22 karat (10 grams) for 46,320 rupees. It should be noted that gold prices vary from city to city and depend on taxes and duties imposed by the state government.
Also read: Gold and Silver Prices on September 16th: Gold and Silver prices are poised for heavy losses on the risks of a Fed rate hike
caution of investors
Investors are expected to maintain a cautious stance as the US Federal Reserve is expected to hike interest rates by 75 basis points at the end of its two-day monetary policy meeting on Wednesday. Given the risks of inflation and recession in the US, some market observers also expect the increase to be around 100 basis points. A high interest rate environment increases the opportunity cost of holding non-yielding gold bullion. Gold bars have tumbled for most of 2022 as the Fed has maintained its aggressive monetary policy, which is eroding non-earning assets while stimulating the US dollar.