Can Gold Rate In India Fall In The Upcoming Quarters In 2022?

Gold rates in the international markets started to perform poorly since the end of the last trading day, as the US Dollar index started to gain significantly. On the other hand, the US Bond yield too performed marginally higher that had impacted the gold markets negatively. The February gold futures were down by around $29.60/oz. Following a similar trend, March Comex silver futures were also down by $0.487/oz.

Some analysts are giving a bearish opinion about the gold rates because of an interest hike anticipation by the US Federal Reserve. However, State Street Global Advisors Head of Gold Strategy George Milling-Stanley stated his bullish opinion on the gold market. He said, "I think that we're going to see better performance than we've seen in 2021. I think, to put 2021 in perspective, it's important to remember that gold was coming off two banner years. The price went up 18% in 2019. It went up another 24% in 2020," - Kitco News reported today.

The Covid Pandemic has been the most important reason behind the sudden surge in the gold rates in 2020. All other factors like high inflation and low-interest rates are inter-connected with the pandemic, as they caused major economic tensions. Manufacturing growth and employment situation downgraded to new levels. Hence, investors and traders started to rely on gold. In 2022, the inflation rates are not falling rapidly, so that can be good news for gold rates. However, till the last year, US Fed could not agree to hike the interest rate. But this year, according to some reports, the Fed can hike the interest rate to control inflation.

Hence, with a lower inflation rate, the gold rates can fall in the upcoming quarters. So, in line with the international trend, the Indian gold rates can also drop in the upcoming quarters, in 2022. However, gold shows a very volatile market, depending on multiple factors, so all of these are anticipations. Some analysts have already said that they are expecting gold rates to fall around the $1600/oz level, this year in the global markets.

Today, Indian gold prices gained marginally by Rs. 10/10 grams, however, in most of the major cities in the country, gold rates have fallen. On January 4, 2022, the 22 carat gold prices are quoted at Rs. 47,260/10 grams and 24 carat gold rates are quoted at Rs. 49,260/10 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)
Mumbai	47,260/-	49,260/-
Delhi	47,050/-	51,330/-
Bangalore	44,900/-	48,990/-
Hyderabad	44,900/-	48,990/-
Chennai	45,170/-	49,230/-
Kerala	44,900/-	48,990/-
Kolkata	47,100/-	49,800/-

The Comex gold futures surged by 0.20% and were quoted at $1803.7/oz, till last traded. On the earlier day, Comex gold futures closed at $1800.1/oz. The spot gold prices too gained by 0.28%, and were quoted at $1807.4/oz till last traded. Additionally, the US dollar index in the spot market stood at 96.17. Mirroring the international spot gold rate trend, in India the MCX gold in February future quoted at Rs. 47,832/10 grams, gained marginally by 0.24%, till last traded.