Gold Price Delhi, Sept 21: Gold, Silver Prices Rise Amid Surge in Global Precious Metal Prices

Gold prices in the national capital rose by Rs 152 to Rs 49,871 per 10 grams on Wednesday, amid a rise in international precious metal prices along with rupee depreciation, according to HDFC Securities.

In the previous trade, the yellow metal had closed at Rs 49,719 per 10 grams.

Silver also jumped by Rs 333 to Rs 57,406 per kilogram from Rs 57,073 per kg in the previous trade, according to a PTI report.

The rupee depreciated by 8 paise to 79.82 against the US dollar in opening trade on Wednesday as investors await the US Fed's policy decision on interest rates for further cues.

In the international market, gold was trading higher at USD 1,671 per ounce while silver was flat at USD 19.35 per ounce, as per the PTI report.

"Gold prices traded higher ahead of US FOMC meet and geopolitical tension after Russian president Vladimir Putin announced a partial military mobilisation, escalating the war in Ukraine," said Tapan Patel, Senior Analyst (Commodities) at HDFC Securities.

Inflation and gold rates in India
It is important to note that inflation does have a major impact on gold prices in India. For example, when inflation goes higher, so does interest rates. When interest rates go higher, gold prices tend to fall. This is because, people and investors rush to sell gold and buy fixed yielding selling government securities. So, one needs to be careful, when investing in gold.

Investors must keep it is a natural hedge, against any decline in prices. If you are investing in large quantities it is better to check with experts especially your local jeweller. However, the important thing that one should note is that what matters to the international gold markets is the interest rates in the US.

When these go higher, gold prices in India tend to higher, which is why interest rates assume paramount importance in India.