Gold rate falls in early trade; silver becomes dearer, trading at Rs 58,000

Gold prices fell in Tuesday's early trade with 10 gram of yellow metal (24-carat) trading at Rs 51,110, after a decrease of Rs 180, according to the GoodReturns website. Silver, on the other hand, became dearer today, and is trading at Rs 58,000 per kg.

Ten gram of 22-carat gold is trading at Rs 46,850 today, after a decrease of Rs 160.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,110 per 10 gram, while 22-carat gold is trading at Rs 46,850, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 51,310 and Rs 47,050 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 51,720 and Rs 47,400, respectively.

Gold prices were flat on Wednesday on a firmer dollar, although the bullion was anchored in a narrow range with investors awaiting further guidance on US Federal Reserve's policy tightening.

Spot gold was flat at $1,653.06 per ounce, as of 0118 GMT, while US gold futures were down 0.2 per cent at $1,654.20.

While gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the bullion, which yields nothing.

Top gold consumer, China's net gold imports via Hong Kong halved from the previous month in September, data showed on Tuesday.

In Mumbai, Delhi and Kolkata, 1 kg of silver is selling at Rs. 58,000. While in Chennai, Bengaluru and Hyderabad, 1 kg of silver is selling at Rs 63,500.

Spot silver fell 0.1 per cent to $19.32 per ounce. 

(With inputs from Reuters)