Gold rates fall in early trade; silver dips Rs 900, selling at Rs 55,440

Gold and silver prices fell in Wednesday's early trade with 10 gram of the yellow metal (24-carat) trading at Rs 49,970, after a decrease of Rs 270, according to the Good Returns website. Silver is trading at Rs 55,400 per kg after a change of Rs 900. Meanwhile, ten grams of 22-carat gold is trading at Rs 45,800 after a change of Rs 200.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 49,970 per 10 gram, while 22-carat gold is trading at Rs 45,800, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 50,130 and Rs 45,950 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 50,290 and Rs 46,100, respectively.

Gold prices slipped on Wednesday, as the dollar resumed climb after Federal Reserve officials reiterated the U.S. central bank's resolution to maintain an aggressive policy stance to tackle soaring inflation. Spot gold was down 0.3 per cent at $1,624.81 per ounce, as of 0132 GMT. US gold futures dipped 0.2 per cent to $1,632.4. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.28 per cent to 940.86 tonnes on Tuesday from 943.47 tonnes on Monday.

Even though gold is seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding bullion and boost the dollar.

Meanwhile, 1 kg of silver in Mumbai, Delhi, and Kolkata was trading at Rs 55,400. In Chennai, Bengaluru, and Hyderabad, one kg of silver is selling at Rs 60,700.

Spot silver fell 0.9 per cent to $18.26 per ounce.