Gold, silver rates fall in early trade; yellow metal trading at Rs 50,560

Gold and silver rates fell in Friday's early trade with 10 gram of the yellow metal (24-carat) trading at Rs 50,560, after a decrease of Rs 220, according to the GoodReturns website. Meanwhile, one kg of silver is trading at Rs 56,150, after a decrease of Rs 250.

Ten gram of 22-carat gold is trading at Rs 46,350 today.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 50,560 per 10 gram, while 22-carat gold is trading at Rs 46,350, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 50,730 and Rs 46,500 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 51,110 and Rs 46,850, respectively.

Gold prices on Friday were set for a second weekly decline as US Treasury yields held near multi-year highs following strong labour market data and hawkish comments from Federal Reserve officials, dampening the appeal for zero-yield bullion. Spot gold was flat at $1,627.20 per ounce, as of 0118 GMT, and lost 0.8 per cent so far for the week. US gold futures were down 0.4 per cent at $1,630.10.

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

Swiss gold exports to top markets China and India increased in September, while shipments to Turkey rose to the highest since April 2013, Swiss customs data showed on Thursday.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.19 per cent to 930.99 tonnes on Thursday.

In Mumbai, Delhi and Kolkata, 1 kg of silver is selling at Rs. 56,150. While in Chennai, Bengaluru and Hyderabad, 1 kg of silver is selling at Rs 61,000.

Spot silver eased 0.2 per cent to $18.63 per ounce.

(With inputs from Reuters)