Meanwhile, 22-carat gold rose ₹75 to ₹13,230 per gram, while 18-carat gold gained ₹62 to ₹10,825 per gram. The prices were updated during the morning.

Silver prices, however, remained unchanged. Silver was priced at ₹235 per gram or ₹2,35,000 per kilogram, the same as Wednesday. While domestic gold prices moved higher, silver showed little movement in the retail market.

MCX Gold and Silver Update

At the Multi Commodity Exchange (MCX), the price of gold futures for August was ₹1,42,041 per 10 grams, an increase of ₹260 or 0.18 percent. Gold futures for October were at ₹1,43,350 per 10 grams, an increase of ₹67 or 0.05 percent.

The silver futures prices fell. For September, the silver futures were at ₹2,16,150 per kg, a fall of ₹1,329 or 0.61 percent. For December, the silver futures fell by ₹1,599 or 0.72 percent to ₹2,19,939 per kg. This movement on MCX shows that the traders were wary despite gold’s continued gains.

Globally, the spot price of gold stood at $4,076.29 per ounce, an increase of 0.3 percent. COMEX gold stood at $4,049.30 per ounce, an increase of 0.32 percent. The spot price of silver increased 0.4 percent to $57.86 per ounce

Why Did Gold Prices Rise Today?

Gold has been backed by news of the US Federal Reserve keeping interest rates unchanged following its latest monetary policy meeting. According to Reuters, the market is now trying to figure out the next step of the central bank since Federal Reserve Chairman Kevin Warsh confirmed that the Fed will do everything necessary to curb inflation.

The analysts pointed out that the disappointment in the overall Fed’s tone had lowered expectations of a rate increase in the near future. CME FedWatch tool is now showing a 63% probability of a rate rise in September, compared to the prior 81% estimate before the monetary policy decision.

Gold was also backed by rising geopolitical risks amid the latest strikes in Iran by the US forces. At the same time, the price of crude oil declined due to a steady flow of tankers from the Middle East.

How Does the Rupee Affect Gold Prices?

The trade in gold takes place in US dollars on an international scale. If there is a depreciation of the rupee in terms of the dollar, then the importation of gold becomes costly, which increases the price level of domestic gold, irrespective of international prices.

Alternatively, a strengthened rupee can assist in controlling the prices of domestic gold due to reduction in the cost of importations.

Why Are Gold Prices in India Higher Than Global Prices?

Indian price of gold is different from world market prices. Imported gold comes under customs duty and GST. The cost of gold is further affected by currency change from US Dollar to Indian Rupee.

There are some extra costs like premium on gold, transportation cost and jewellery making charge. They may differ from city to city and from jeweller to jeweller.

Gold Prices in Major Indian Cities

Among major cities, Delhi, Jaipur and Lucknow recorded the highest gold prices, while Mumbai, Kolkata, Bengaluru, Hyderabad and Pune quoted slightly lower rates.

(Source: Good Returns)

Weekly Trend

There have been fluctuations in the prices of gold in the last one week. After reaching ₹14,586 per gram on July 27, there were two days of decline before recovery was made on Thursday.

Despite the fluctuations, the prices of gold still remain higher than those prevailing at the beginning of July. This is because, in July, the prices of 24-carat gold rose from ₹14,078 per gram on July 1 to ₹14,433 per gram on July 30, thus showing a monthly growth of 2.52 percent.

The prices of silver have been quite stable recently. The prices have remained stable at ₹2,35,000 per kg for two consecutive days following a decline from ₹2,40,000 per kg.

Silver Prices in Major Indian Cities

Silver prices were unchanged across major cities. There was no difference in retail rates on Thursday.

(Source: Good Returns)

Dubai Gold Prices

Many Indian travellers compare gold prices in Dubai because taxes and making charges are generally lower than in India. Strong competition among jewellers also keeps prices relatively competitive.

Based on the UAE exchange rate of 1 AED = ₹25.94, Dubai gold prices were as follows:

(Source: Khaleej Times)

What Should Buyers Watch Next?

Investors will closely watch the release of the US Personal Consumption Expenditures (PCE) inflation data later in the day. The report could influence expectations for the Federal Reserve’s next policy decision.

Markets will also monitor the dollar, Treasury yields, developments in the Middle East, crude oil prices and movements in COMEX gold and silver. These factors are expected to shape the direction of precious metal prices in the coming sessions.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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