Gold down Rs 700, trading at Rs 51,230; silver drops by Rs 300 per kg

The price of gold fell 700 rupees per 10 grams in early trading on Wednesday, with the yellow metal (24 carats) trading at 51,230 rupees. The price of silver, meanwhile, fell from Rs 300 to Rs 54,900 per kg.

Ten grams of 22-karat gold traded at Rs 47,000 on Wednesday after falling by Rs 600.

In Mumbai and Kolkata, 24 karat gold sells for Rs 51,230 for 10 grams, while 22 karat gold trades at Rs 47,000 in the respective cities. In Delhi, 24 karat and 22 karat gold are trading at Rs 51,4400 and Rs 47,150 for 10g, respectively.

In Chennai, 24k and 22k gold are trading at Rs 52,400 and Rs 48,000, respectively.

Gold held steady on Wednesday, with gains kept in check by a slight rise in the U.S. dollar, as market participants eagerly awaited a speech from Federal Reserve Chairman Jerome Powell later this week. Spot gold was little changed at $1,746.60 an ounce, 0126 GMT, after rising 0.7% in the previous session. US gold futures were down 0.2% at $1,758.20.

Gold is very sensitive to rising US interest rates, as these increase the opportunity cost of holding non-performing bullion. Gold demand in India improved last week as domestic prices fell to a more than two-week low, while volumes were bleak in other Asian hubs.

Meanwhile, one kg of silver was trading at Rs 54,900 in Delhi, Mumbai and Kolkata. In Chennai, Bengaluru, Hyderabad and Kerala, silver sells for Rs 60,700 per kg.

Spot silver gained 0.4% to $19.08 an ounce.

(With contributions from Reuters)

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