Gold Hits 4,310 Dollars After Fed Rate Hike

Spot gold climbed above 1% to reach 4,310 dollars per ounce on Thursday. This recovery followed a sharp drop in the previous trading session. The US Federal Reserve raised its benchmark interest rate by 25 basis points. The target range is now set between 3.75% and 4%. Investors assessed the impact of this monetary policy shift on precious metals.

Silver prices also gained ground during the session. The metal had faced pressure ahead of the central bank's decision. Market participants tracked the US dollar and Treasury yields closely. Geopolitical developments remained a factor in price movements. The volatility reflects a period of uncertainty for bullion markets.

Indian retail rates remain elevated

Domestic prices in India reflect international trends and exchange rates. 24-karat gold is priced at 1,53,600 rupees per 10 grams. This data comes from GN auto markets/commodities reports. 22-karat gold stands at 1,40,800 rupees per 10 grams. Silver 999 Fine is listed at 2,35,140 rupees per kilogram.

These rates exclude making charges and taxes. Jewellers add costs for craftsmanship and GST. The final price paid by consumers is higher than the bullion rate. 22-karat gold is preferred for jewelry due to its durability. 24-karat gold is considered the purest form of the metal.

City wise price variations exist

New Delhi 24-karat gold costs 1,53,060 rupees per 10 grams. Mumbai prices are slightly higher at 1,53,320 rupees. Bengaluru sees rates of 1,53,440 rupees for the same purity. Kolkata rates stand at 1,53,120 rupees per 10 grams. Hyderabad lists 24-karat gold at 1,53,560 rupees.

Chennai records the highest 24-karat rate at 1,53,770 rupees. Silver prices vary modestly across these major cities. New Delhi silver is priced at 2,34,310 rupees per kilogram. Mumbai silver costs 2,34,710 rupees per kilogram. Bengaluru silver is valued at 2,34,890 rupees per kilogram.

Annual gains show significant outperformance

Gold has risen 39.22% over the past year. A year ago 10 grams cost approximately 1,10,350 rupees. Silver has gained 85.49% in the same period. The previous price for one kilogram was around 1,26,850 rupees. These figures highlight strong returns for precious metal investors.

An investment of 1 lakh rupees in gold a year ago is now worth roughly 1.39 lakh. The same amount in silver would be worth approximately 1.85 lakh. These calculations are based on bullion rates. They do not include transaction costs or taxes. The disparity in gains favors silver in this timeframe.