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Gold and silver prices in the US on Tuesday rose by more than 1 per cent, fuelling expectations of a sharp rise in their prices in India on Wednesday.

Gold prices in the US bullion market rose to $1,823, up by 1.73 per cent and silver prices rose to $24.09, up by 1.03 per cent over previous close, mainly due to long term speculations over rate hikes by US Federal Reserve.

The US Federal Reserve is expected to announce another round of hikes in its first meeting in the new year, scheduled for February 1, 2023.

Rise in prices of yellow metal and silver in global markets are likely to impact domestic prices and they may see a rise on December 21 in India.

Any global movement in the price of gold affects the price of the yellow metal in India.

This mainly derives from the fact that India is one of the largest importers of gold and as such when the import prices change due to global movement in price, the same is subsequently reflected in the prices of gold at home.