Gold prices fall by Rs 270; silver down by Rs 1,300, trading at Rs 59,500

Gold and silver prices went down in Tuesday's early trade with 10 gram of the yellow metal (24-carat) trading at Rs 51,930, after a change of Rs 270. Silver, on the other hand, was down by Rs 1,300 and is trading at Rs 59,500 per kg. Ten grams of 22-carat gold is trading at Rs 47,600 after a decrease of Rs 250.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,930 per 10 gram, while 22-carat gold is trading at Rs 47,600, respectively. In Delhi, 24-carat and 22-carat gold are trading at Rs 52,100 and Rs 47,750 per 10 gm, respectively.

In Chennai, 24-carat and 22-carat gold is trading at Rs 52,420 and Rs 48,050, respectively.

Gold prices were flat on Tuesday, pinned near a one-week low hit in the previous session, as a firmer dollar and the prospect of further oversized rate hikes by the US Federal Reserve sapped the zero-yielding asset's appeal.

Spot gold was flat at $1,668.29 per ounce, as of 0143 GMT. Prices fell 1.6 per cent on Monday, their biggest one-day percentage decline since Sept. 23. US gold futures rose 0.3 per cent to $1,679.60 per ounce.

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

Meanwhile, 1 kg of silver in Mumbai, Delhi, and Kolkata is trading at Rs 59,500. In Chennai, Bengaluru, and Hyderabad, one kg of silver is selling at Rs 64,800.

Spot silver fell 0.4 per cent to $19.57 per ounce