International gold rates have gained significantly, two days in a row, and the Indian gold rates have reacted similarly. Today gold rates have surged by Rs. 370/ 10 grams in the country, on December 17. The 22 carat gold rates are quoted at Rs. 47,720/10 grams and 24 carat gold rates are quoted at Rs. 48,720/10 grams in India. Additionally, in the major cities, gold rates have gained even more than that. In Chennai, Bangalore, and Madurai gold prices have rallied fro. Rs. 400 to 490/10 grams.
Gold rates have finally crossed the $1800/oz level in December today, as the inflationary concerns intensified. In December, investors and traders were uncertain that the Fed will soon introduce a new monetary policy to control inflation. The Fed could hike tapering pace, and gold rates were under pressure. But in lack of that, gold rates are gaining again.
The precious metals business earlier reckoned an interest rate hike soon. But, the Fed has made it clear that they are not doing any interest rate hike until the next year. So, the gold rates are reacting positively now, in mid-December. A Kitco News report stated, "Technically, February gold futures prices hit a two-week high today. Bulls have regained the overall near-term technical advantage with today's big gains. Bulls' next upside price objective is to produce a close above solid resistance at $1,840.00."
The US Dollar index on the other hand has been down in the morning, as the market opened. This has triggered the gold market to surge. In line with that gold, rates have gained significantly in India. "Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week's low of $1,753.00. First resistance is seen at $1,811.40 and then at $1,819.30. First support is seen at $1,785.00 and then at today's low of $1,775.70/oz," A Kitco News report mentioned.
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)|
Today the Comex gold futures gained only by 0.43% and were quoted at $1804.3/oz, while the spot gold prices surged by 0.51%, and were quoted at $1809.6/oz till last traded. Yesterday Comex gold futures closed at $1796.6/oz. Additionally, the US dollar index in the spot market went to 96.10, gained by 0.14%. Mirroring the same global gold rate trend, in India, the Mumbai MCX gold in February future quoted at Rs. 48,681/10 grams, gained by 0.07%, till last traded.