Gold has lost some of its glitter on Friday as Indians are expected to rush to the markets for stocking up gold on the auspicious occasion of Dhanteras this weekend. Global demand for the yellow metal has been hit by the higher bond yields in the US driven by the Federal Reserve’s rate hikes. As of now, the price of 22 carat gold has settled at Rs 4,635 per gram down from Rs 4,655 yesterday, and for 24 carat, the price per gram has dropped to Rs 5,056 from Rs 5,078.
No yields, but holding costs go up
The cost of holding gold goes up amid high interest rates, while it yields nothing as compared to treasury bonds which promise higher yields. This is why the yellow metal is losing its allure among global investors despite being a safe bet against inflation and recession. As for Indians, the gold rush during the festive season is rooted in tradition and almost 40 per cent youth aged between 18 and 24 also want to invest more in the precious metal, as per an Axis survey.
Citywide breakdown
Gold remains most valuable in Chennai at Rs 4,685 a gram for 22 carat and Rs 5,111 per gram for 24 carats.
As for Delhi, a gram of gold costs Rs 4,650 for 22 carat, and Rs 5,073 for 24 carat of the yellow metal.
Mumbaikars on the other hand can bag a gram of 22 carat gold for Rs 4,635 and 24 carat is available for Rs 5,056 per gram.
Silver also lost its shine along with its yellow peer, hitting Rs 56.37 per gram after a 0.50 per cent drop in prices.
Despite the global pressure on precious metals from US Federal Reserve rate hikes, Swiss gold exports to India, China and Turkey went up in September.
