Gold prices zoom after RBI announces repo rate hike

Domestic gold prices saw a sharp rise after the Reserve Bank of India (RBI) hiked interest rates during an announcement on Friday. The prices were steady since Friday morning following a pullback in the US dollar

ON MCX, gold prices opened at Rs 49,971 per 10 gram and was largely unmoved from the previous close at Rs 49,994 until it saw a jump of 0.3 percent. Around 10:15 am, the yellow metal prices were at Rs 50,145.

Meanwhile, Silver prices moved 0.4 percent touching Rs 56,391 early Friday.

On Friday, RBI Governor Shaktikanta Das announced hike in the repo rate by 50 basis points (bps) to 5.90 percent. He said that the enduring effects of pandemic and geopolitical conflict is impacting economies.

"Nervous investor sentiments have triggered a flight to safety. Several EMEs are facing a sharp depreciation in currencies...," Das said in a press briefing on Friday.

Ahead of the repo rate hike, the rupee had appreciated by 24 paise to 81.62 against the US dollar, as the greenback eased after touching 20-year high against six other peers in preceding sessions. At the time of writing this report, US Dollar Index Futures were down 0.06 percent at 112.135.

Meanwhile, crude oil prices remained steady ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled on October 5. Brent crude futures were last down 0.9 percent to $87.1 a barrel and West Texas Intermediate futures were down 0.1 percent to $81.1 a barrel on the last count.