Gold prices rise above Rs 1.36 lakh/10g, silver slides Rs 5,600/kg on MCX amid Fed rate hike worries. Check physical rates in your city

Gold prices inched slightly higher while silver prices dropped more than 3% on the Multi Commodity Exchange (MCX) on Friday as rising oil prices stoked inflation concerns and reinforced expectations for higher-for-longer US rates.

In the domestic market, MCX silver futures for December 2026 delivery fell Rs 5,677 to Rs 1,78,848 per kg. Gold futures for December 2026 delivery rose by Rs 54 to Rs 1,36,279 per 10 grams.

In the international market, gold prices inched slightly higher, recovering from the previous session's lowest level in more than a year, although the yellow metal remains on track to record a weekly loss. Spot gold rose 0.2% to $3,883.05 per ounce after dropping 3% on Thursday. Bullion has declined 4.4% so far this week. Spot silver was up 0.1% at $50.07 per ounce.


Also read | Gold inches higher but heads for weekly loss on Fed hike concerns

Retail inflation rises above RBI’s upper tolerance limit

Back home, India’s retail inflation accelerated to 6.09% in October, compared with 5.54% in September, according to data released by the Ministry of Statistics and Programme Implementation on Thursday. This marks the 12th straight month of consumer prices quickening in the country.

The October reading shows inflation has now breached the Reserve Bank of India's target range of 2-6%. Nearly half of the economists surveyed by Reuters expected inflation to reach or exceed the 6% threshold.

"We are seeing clear signs of broadening inflationary pressures, with higher energy and raw material costs passing through to core inflation. In addition, food price inflation is picking up, with further upside risks stemming from the impact of weak reservoir levels on the rabi crop. Headline inflation is likely to stay above the RBI’s 6% upper tolerance limit over the next few months. Against this backdrop, we expect another 25 bps rate hike, although the recent sharp correction in crude and INR appreciation provides some breathing room to the RBI," said Vikram Chhabra, Senior Economist, 360 ONE Asset.

Also read | Retail inflation rises to 6.09% in October, breaches RBI’s upper tolerance limit for first time under new CPI series

Will RBI hike rates in December?

Rising inflation numbers come as an increasing number of economists expect the RBI to announce interest rates during its upcoming meeting in December. While a 25 basis points hike is expected by most, a few analysts also warn that a 50 basis point cut cannot be ruled out.

This comes amid an overall global rate hike cycle. The Reserve Bank of India (RBI) Governor Sanjay Malhotra last month announced the central bank’s first rate hike in nearly four years, but market analysts said the shift to ‘calibrated tightening’ amid a challenging global geopolitical backdrop was the bigger takeaway.

The US Federal Reserve and several other central banks have been raising rates as the Middle East war spiked oil prices and resulted in inflationary pressures. Although gold is typically seen as an inflation hedge, higher interest rates hike the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

Also read | Rs 80,000 crore FII buying sparks explosive rally on Dalal Street. Will RBI rate hike worries kill the party?

Check gold prices in your city

Here are physical gold rates in some Indian cities as of November 13, according to data on Goodreturns.

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,28,340/10 grams while pure gold (24 carat) prices stand at Rs 1,39,940/10 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,28,140/10 grams while pure gold (24 carat) prices stand at Rs 1,39,790/10 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,28,140/10 grams while pure gold (24 carat) prices stand at Rs 1,39,790/10 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,28,140/10 grams while pure gold (24 carat) prices stand at Rs 1,39,790/10 grams.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.