Gold, silver rates rise in early trade; yellow metal selling at Rs 54,880

Gold and silver became dearer in Thursday's early trade with ten grams of the yellow metal (24-carat) trading at Rs 54,880, after an rise of Rs 550. Silver, on the other hand, is trading at Rs 71,000 per kg today, after the price rose by Rs 2,000.

Ten gram of 22-carat gold was trading at Rs 50,300 today, according to the GoodReturns website.

In Mumbai, Kolkata, Hyderabad, Kerala, and Pune, 10 grams of gold (24-carat and 22-carat) was selling at Rs 54,880, and Rs 50,300, respectively.

In Delhi, 24-carat and 22-carat gold was trading at Rs 55,040, and Rs 50,450, respectively. In Chennai, 10 grams of 24-carat and 22-carat gold are trading at Rs 55,640 and Rs 51,000, respectively.

Gold prices inched down in early Asian hours on Thursday, after the US Federal Reserve signalled to more interest rates hikes next year.
 

Spot gold slipped 0.1% to $1,806.11 per ounce, as of 0035 GMT. U.S. gold futures were little changed at $1,817.80.
 

The Fed will deliver more interest rate hikes next year, even as the U.S. economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the central bank does not get a firmer grip on inflation.
 

Gold is traditionally known as an inflation hedge but higher interest rates tend to dim the bullion's appeal as it increases the opportunity cost of holding the non-yielding metal.

In Mumbai, Delhi, and Kolkata, one kg of silver is trading at Rs 71,000 per kg today. Meanwhile, in Chennai, Bangalore and Hyderabad, silver is selling at Rs 74,000 per kg.

Spot silver fell 0.4% to $23.81, platinum lost 0.1% to $1,027.82 and palladium was down 0.1% to $1,914.98

(With inputs from Reuters)