Gold prices down below 50K, a first in 5 months; silver falls to Rs 55,130

In global markets, gold rates, on Thursday, fell to lowest in nearly a year, buffeted by an elevated US dollar. 

In India, the fall has been less steep due to the recent import duty hike on the yellow metal. MCX gold futures were down 0.5 per cent to Rs 49,772 per 10 gram, the lowest since February, while silver fell 0.88 per cent to Rs 55,130 per kg. 

India imports most of its gold requirement. Besides global rates and rupee-dollar movement, domestic prices also track change in different levies like import duty and the goods and services tax.

Prospects of more interest rate hikes by major central banks also weighed on bullion's appeal as, on Thursday, spot gold in the US, fell to $1,691.40, the lowest since August 2021. A stronger US dollar makes greenback-priced bullion more expensive for buyers holding other currencies.

Next week, the policymakers of US Federal Reserve (Fed) will meet to decide on interest rate. The Fed is widely expected to raise interest rates by 75 basis points at its policy meeting next week to combat inflation.