Gold, silver rates fall in early trade; yellow metal trading at 51,160

Silver prices are down by Rs 600 and is trading at Rs 58,900 per kg

Gold and silver became cheaper in Wednesday's early trade with 10 gram of the yellow metal (24-carat) trading at Rs 51,160, after a change of Rs 770. Silver, on the other hand, is down by Rs 600 and is trading at Rs 58,900 per kg. Ten grams of 22-carat gold is trading at Rs 46,900 after a decrease of Rs 700.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,160 per 10 gram, while 22-carat gold is trading at Rs 46,900, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 51,330 and Rs 47,050 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 51,710 and Rs 47,400, respectively.

Gold prices inched lower on Wednesday as traders looked forward to US Federal Reserve minutes and key inflation data for clues on the pace of future interest rate hikes. Spot gold fell 0.1 per cent to $1,663.60 per ounce, as of 0055 GMT, hovering close to a one-week low touched on Tuesday. US gold futures were down 0.8 per cent at $1,673.30.

While gold is considered as a hedge against inflation and economic uncertainties, rising interest rates reduce the appeal of the asset, which pays no interest. 

The International Monetary Fund warned on Tuesday that colliding pressures from inflation, war-driven energy and food crises and sharply higher interest rates were pushing the world to the brink of recession.

Meanwhile, 1 kg of silver in Mumbai, Delhi, and Kolkata is trading at Rs 58,900. In Chennai, Bengaluru, and Hyderabad, one kg of silver is selling at Rs 64,000.

Spot silver fell 0.6 per cent to $19.08 per ounce.