Gold price at two-month high, tops Rs 51000; Silver above Rs 61000 - check rates in your city

Gold price on Tuesday hit a two-month high on account of the Rupee gaining strength against the American dollar and lower US Treasury yields. On the MCX, the yellow metal breached the Rs 51000 level to trade 0.55 higher, Futures December contract, around 2 PM on MCX. On the international market, gold was quoting higher at USD 1,704.60 per ounce.

According to a Reuters report, the benchmark US 10-year Treasury yields edged closer to a 1-1/2-week low touched on Monday, while the dollar index was flat near Monday's low.

Likewise, Silver price too hit a three-month high of Rs. 61,686 per kg. The metal surged 1.27 per cent today while it had advanced more than 7 per cent on Monday -- said to be the highest in 14 years in a single day. On the international market, Silver was up at USD 20.97 per ounce.

Renisha Chainani, Head of Research, Augmont Gold, said that the rebound in Silver price was seen yesterday as the metal was oversold and the recession in the US now seems to be imminent. The US manufacturing data is at 2.5 years low which is a leading indicator that inflation is high and concerns about recession are growing. Also, bond yields have fallen, giving strength to Gold and Silver. 

"This rebound will continue for now. Buying or accumulation in Silver is suggested on dips near Rs 60000 level. The bottom has been formed in Silver and upside move towards 70000 is likely," she said.

Factors behind rise in Gold, Silver price: 

1. Dollar index has declined by 2 per cent fall in four days.

2. The Bond yields have seen a downside and are at one-week low.

 3. While economies around the world are trying to fight inflation by increasing the interest rates, the United Nations has issued a warning to curb the increase in interest rates. 

 4. Rise in prices of Gold and Silver on the international market 

Gold rates city-wise today, October 4, for 22 Carat:

Chennai- ₹47,750

Mumbai- ₹47,350

Delhi- ₹47,500

Kolkata- ₹47,350

Bangalore- ₹47,400

Hyderabad- ₹47,350

Kerala- ₹47,350

Ahmedabad- ₹47,400