Global Gold Prices Drop To $1907: Benefits Of Buying Gold Now

Gold prices are now falling globally, as investors are expecting another interest rate hike by the US Federal Reserve. US Fed Chair Jerome Powell indicated a hawkish stance and analysts are thinking that a tight monetary policy will be adopted by the country's central bank. The headline inflation rate in the USA has gained 8.5% YoY. Hence, the Fed can hike the interest rate as a tool to control inflation. Gold rates in India are quoted flat today. The 22 carat gold rates are quoted at Rs. 48,990, and 24 carat gold rates quoted at Rs. 53,440/10 grams. So, it is a good time time to buy gold with lower prices. However, gold rates can further fall globally.

In addition to that, the US 10-year treasury yield and the gold chart are now running in an interesting manner, after the Russia-Ukraine war has eased. According to a report, "Overnight in the financial markets, yields and the U.S. dollar moved higher as the risk-off trade commenced." Additionally, this year, the US 10-year treasury yield has outperformed gold. With higher yield, investors are now showing more interest on bonds than gold. Recently, Indian equity market has also been down due to this gain in the US yield, as investors were withdrawing money to invest in US bonds.

US Dollar index is another instrument that drives gold rates in the international markets. With the gain in US dollar index, gold markets are under pressure now. So, with a fall in gold rates, Indian retail buyers can now show more demands. Earlier in March, when gold rates were very high in the Indian markets, retail sales of gold fell significantly.

Today, the Comex gold futures were quoted at $1907.40/oz, falling by 1.39%, till last traded. Yesterday it was last quoted at $1934.30/oz. The spot gold prices are quoted at $1907.10/oz, falling by 1.36%, till last traded. On the other hand, the US dollar index in the spot market stood at 101.65, gaining by 0.56%. In India, the MCX gold in June future was quoted at Rs. 51,746 grams, falling by 0.99%, till last traded.