Gold prices in India declined on Friday, with both 24-karat and 22-karat gold falling by around 0.64%, even as crude oil prices climbed above $113 per barrel amid concerns over global energy supplies following Houthi attacks in Saudi Arabia.
The price of 24-karat gold dropped by ₹924 to ₹1,42,469 per 10 grams, while 22-karat gold fell by ₹846.39 to ₹1,30,501.60 per 10 grams, according to the rates available at 12.40 pm.
The decline in domestic gold prices came alongside a weakening rupee, which slipped to ₹94.96 against the US dollar on Friday from ₹94.8175 previously.
Gold prices across major cities
Chennai recorded the highest gold prices among the six cities listed, while Bengaluru reported the lowest rates for both categories.
The city-wise rates for Friday were:
- Delhi: 24-karat gold at ₹1,42,509 and 22-karat gold at ₹1,30,538.24 per 10 grams.
- Bengaluru: 24-karat gold at ₹1,42,500 and 22-karat gold at ₹1,30,530 per 10 grams.
- Chennai: 24-karat gold at ₹1,43,815.80 and 22-karat gold at ₹1,31,735.27 per 10 grams.
- Hyderabad: 24-karat gold at ₹1,42,807.04 and 22-karat gold at ₹1,30,811.25 per 10 grams.
- Mumbai: 24-karat gold at ₹1,42,643.50 and 22-karat gold at ₹1,30,661.45 per 10 grams.
- Kolkata: 24-karat gold at ₹1,43,642.02 and 22-karat gold at ₹1,31,576.09 per 10 grams.
Kolkata had the second-highest listed prices, with 24-karat gold at ₹1,43,642.02 and 22-karat gold at ₹1,31,576.09 per 10 grams. Delhi and Bengaluru recorded comparatively lower rates.
Why gold prices are under pressure
Brent crude oil rose 0.62% to $113.87 per barrel on Friday as Houthi attacks in Saudi Arabia heightened concerns about possible disruptions to global energy supplies.
The rise in oil prices has intensified worries about inflation, as higher energy costs can feed into prices across the economy. Such concerns can influence expectations about interest rates and reduce the appeal of gold, which does not pay interest.
International gold prices have also faced pressure from concerns that interest rates could remain elevated for longer. On Thursday, spot gold fell 2.4% to its lowest level in more than two months as rising oil prices reinforced inflation fears and expectations of tighter monetary policy.
Gold prices are influenced by several factors, including international market movements, fluctuations in the US dollar, investor demand and expectations about interest rates. Changes in the rupee's value can also affect domestic prices.
The Indian currency weakened to ₹94.96 against the US dollar on Friday, compared with ₹94.8175 in the previous session, amid rising crude oil prices and concerns over global market risks.
Gold and crude oil moved in opposite directions on Friday, with domestic prices of both 24-karat and 22-karat gold declining even as Brent crude continued to rise.