Globally, investors have been moving towards alternative investment opportunities like equities, and assets, apart from the traditional cash and cash equivalent investment tools. These alternative investment opportunities include equity funds, gold, government bonds, and cryptocurrencies. Hence, this kind of investment is being diversified among many sectors. So, the gold market has been a bit subdued during the second half of the last year. The gold price did not gain as much as the inflation rate had increased. This year too gold market can follow the same route.
In the first week of January, gold rates stayed subdued in the international markets, which was replicated in the Indian markets. Most of the asset analysts are expecting that the gold rates can fall around the $1600/oz level in 2022. however, that will depend on the inflation rate of the next quarters. Additionally, the growth of the manufacturing sector and employment scenario too will impact the market. A sinking economy usually generates price gain for gold and vice versa.
Lastly, to anticipate the gold rates trend in 2022, one needs to follow the US Federal Reserve monetary policy and inflation control measures. The US central bank is set to hike the interest rates this year, which will impact the gold market towards a price fall. According to commodity analysts at J. P. Morgan Global Research, "The gold market will not be able to withstand the Federal Reserve's plan to tighten its monetary policy in 2022." Hence, Indian gold investors are keeping eyes on the US monetary policy.
Today, Indian gold prices have only increased marginally by Rs. 10/10 grams. On January 3, 2022, the 22 carat gold prices are quoted at Rs. 47,170/10 grams and 24 carat gold rates are quoted at Rs. 49,170/10 grams. However, in the significant cities for the gold market in India, today the gold rates have fallen. In Chennai, gold fell by Rs. 100, while in Bangalore, and Hyderabad gold fell by Rs. 210/ 10 grams.
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 gained by 0.19% and were quoted at $1825.1/oz, till last traded. On the earlier day, Comex gold futures closed at $1828.6/oz. The spot gold prices too fell by 0.19%, and were quoted at $1827.4/oz till last traded. Additionally, the US dollar index in the spot market stood at 95.79, gaining by 0.11%. Mirroring the international spot gold rate trend, in India the MCX gold in February future quoted at Rs. 48,082/10 grams, fell marginally by 0.04%, till last traded.