Gold prices declined on Tuesday, with the 24-Karat rate falling to ₹1,49,475 per 10 grams from ₹1,49,544 on the previous day. The 22-carat rate also fall down to ₹1,36,919.10 per 10 grams from ₹1,36,982.30.
The fall in gold prices comes as the rupee strengthened against the US dollar and oil prices moved lower.
Gold price today
As of 12:30 pm, the 24-karat gold price in India stood at ₹1,49,475 per 10 grams, compared with ₹1,49,544 a day earlier. This marks a decrease of ₹69 per 10 grams.
The 22-karat gold rate stood at ₹1,36,919.10 per 10 grams as of 12:30 pm, down from ₹1,36,982.30 on the previous day. The decrease was ₹63.20 per 10 grams.
Gold prices are being watched alongside movements in the rupee, the US dollar and crude oil prices. On Tuesday, Brent crude, the global oil benchmark, was trading 1.11% lower at $105.47 per barrel in futures trade.
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City-wise gold rates
Delhi: 24k ₹1,49,475 ; 22k ₹1,37,064.74
Bengaluru: 24k ₹1,49,600 ; 22k ₹1,37,033.60
Chennai: 24k ₹1,50,946.40 ; 22k ₹1,38,266.90
Hyderabad: 24k ₹1,49899.20 ; 22k ₹1,37,307.67
Mumbai: 24k ₹1,49,796.65 ; 22k ₹1,37,213.73
Kolkata: 24k ₹1,50,847.20 ; 22k ₹1,38,176.04
Among the cities listed, Chennai has the highest 24-karat gold rate at ₹1,50,946.40 per 10 grams. Kolkata follows at ₹1,50,847.20.
For 22-karat gold, also Chennai marked the highest rate at ₹1,38,266.90 per 10 grams. Kolkata is next at ₹1,38,176.04.
Bengaluru has the lowest 24 and 22 Karat rate.
Also read: RBI 25 bps rate hike: How it will impact your home loan EMI and what borrowers should do
Why are gold prices fluctuating?
Gold prices are influenced by movements in currencies and global commodity markets. The Rupee appreciated 82 paise to ₹94.96 against the US dollar in early trade on Tuesday. It opened at ₹95.53 before gaining ground.
The Rupee’s movement came after several measures announced by the Reserve Bank of India aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange market.
Also read: With retail inflation at 5.5%, RBI’s stance vindicated
The RBI has introduced a dedicated dollar window for oil marketing companies. It has also increased costs for certain foreign exchange hedging transactions. The measures are expected to reduce dollar demand in the spot market and curb speculative positions against the rupee.
The central bank also tightened rules governing forex derivatives trades on Saturday. Banks were asked to create a 20% reserve for dollar purchases of more than $2 million. The RBI also said authorised dealers should not permit users to rebook certain cancelled foreign exchange derivative contracts involving the rupee.
Overall, gold prices are fluctuating due to changes in currency movements and global oil prices.
(With inputs from PTI)