The year 2021 is going to end with a bearish gold market. Today, on December 30, both 22 carat and 24 carat gold prices fell by Rs. 250/ 10 grams. The 22 carat gold rates are quoted at Rs. 47,000/10 grams and 24 carat gold rates are quoted at Rs. 49,000/10 grams. In cities like Bangalore s]and Hyderabad gold rates have surged by Rs. 750, while in Chennai, gold prices fell by Rs. 250/10 grams.
Indian gold market has witnessed a downturn in December this year, although, analysts expected a far different graph from the market. Gold demands have increased in the last few months, irrespective of the rates. Due to worries about inflation, gold demands have increased significantly. Along with the similar line, gold rates should have increased, as gold rates generally hike with the rise in the rate of inflation. But in December, gold rates have played differently.
India is not a producer of gold, but it is the second biggest country in terms of gold demand after China. Indians use gold for a hedge against inflation, for gold jewelleries, and marginally in some industrial sectors. Hence, to meet these demands, jewellers import precious metal from the gold producer countries - like Saudi Arabia, etc. So, gold rates in India, depend on international gold rates. With the fall in global gold rates, Indian markets reacted similarly.
Commenting about how the year is ending with the gold market, a Kitco News report mentioned, "Trader and investor attitudes are still mostly upbeat heading into year-end, and that's also bearish for the safe-haven metals. Technically, February gold futures bulls still have the overall near-term technical advantage and are still working on a near-term price uptrend. Bulls' next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00."
Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
The Comex gold futures fell by 0.28% and were quoted at $1805.1/oz, till last traded on December 29. The spot gold prices fell by 0.11% and were quoted at $1803.90/oz till last traded. On the earlier day, Comex gold futures closed at $1810.2/oz. Additionally, the US dollar index in the spot market went to 96.08, gained by 0.27%. Mirroring the international spot gold rate trend, in India the MCX gold in February future quoted at Rs. 47,675/10 grams, dropped by 0.35%, till last traded.