Gold price rises by Rs 270/10 gm; silver up by Rs 400/kg in early trade

Ten gram of 22-carat gold was trading at Rs 47,500 on Friday after an increase of Rs 250

Gold prices rose by Rs 270 per 10 gram in Friday's early trade as the yellow metal (24-carat) traded at Rs 51,820. The price of silver, meanwhile, went up by Rs 400 to Rs 55,400 per kilogram.

Ten gram of 22-carat gold is trading at Rs 47,500 on Friday after an increase of Rs 250.

In Mumbai and Kolkata, 24-carat gold is selling at Rs 51,820 per 10 gram, while 22-carat gold is trading at Rs 47,500 in the respective cities. In Delhi, 24-carat and 22-carat gold is trading at Rs 51,980 and Rs 47,650 per 10 gm, respectively.

24-carat and 22-carat gold in Chennai is trading at Rs 52,690 and Rs 48,300, respectively.

US gold prices were subdued on Friday, as investors adopted a cautious stance ahead of Federal Reserve Chair Jerome Powell's speech at a key central bankers' meeting, which will be vetted for guidance on interest rate hikes.

Spot gold edged 0.2 per cent lower at $1,755.09 per ounce, as of 0118 GMT. US gold futures were down 0.1 per cent at $1,769.2.

US Fed officials on Thursday were noncommittal about the size of the interest rate increase they will approve at their Sept. 20-21 meeting, but continued hammering the point they will drive rates up and keep them there until inflation has been squeezed. Higher interest rates increase the opportunity cost of holding non-yielding bullion, while boosting the dollar.

The US economy contracted at a more moderate pace than initially thought in the second quarter, as consumer spending blunted some of the drag from a sharp slowdown in inventory accumulation, dispelling fears that a recession was underway.

China's net gold imports via Hong Kong jumped to a nine-month high in July, data showed on Thursday, with banks snapping up bullion as Beijing works to revive an economy hit by a resurgence of COVID cases

Meanwhile, one kg of silver was trading at Rs 55,400 in Delhi, Mumbai, and Kolkata. In Chennai, Bengaluru, Hyderabad, and Kerala, silver is selling at Rs 61,100 per kg.

Spot silver dipped 0.4 per cent to $19.2 per ounce, platinum rose 0.2 per cent to $882.79, and palladium was up 0.2 per cent at $2,151.55

(With inputs from Reuters)