Gold Prices Jump as US Fed Raises Interest Rate
The US Federal Reserve's decision to raise its benchmark interest rate by 25 basis points has impacted gold and silver prices globally. The target range is now between 3.75% and 4%. As a result, spot gold rose over 1% to around $4,310 an ounce, while silver also gained value.
Domestic gold and silver prices in India are influenced by international bullion prices, the rupee-dollar exchange rate, and local market conditions. In the retail market, 24-karat gold is considered purest but is less commonly used for jewelry due to its durability issues.
The current gold prices across major Indian cities on September 17 were as follows:
New Delhi: 24 karat gold - ₹1,53,060/10 gm, 22 karat gold - ₹1,40,305/10 gm, Silver 999 Fine - ₹2,34,310/1 kg.
Mumbai: 24 karat gold - ₹1,53,320/10 gm, 22 karat gold - ₹1,40,543/10 gm, Silver 999 Fine - ₹2,34,710/1 kg.
Gold prices have delivered strong returns over the past year, with 24K gold rising 39.22% and silver gaining 85.49%. This means that ₹1 lakh invested in gold a year ago would be worth roughly ₹1.39 lakh based on the bullion rate, while the same amount in silver would be worth around ₹1.85 lakh.