After slipping heavily in earlier trade, gold prices in the spot market internationally have again zoomed to a crucial $2000 per oz level. Now until some time, the cheer in the gold market has been due to the escalating geo-political tensions, but there are news that it may settle soon with ceasefire. Nevertheless reports of Russian bombing Ukraine maternity hospital still suggest that the war is far from over.
US inflation data and its gold price push
Now coming to today's upward price trajectory of gold which slipped during the previous session, gold has risen mainly on account of higher US CPI data. The inflation in the US for February month came at a 4-decade high that accelerates to 7.9% on an annual basis.
The data was in line with the market expectation and indeed hint at rising price pressure amid the Russia-Ukraine war. Remember, gold is considered as an inflation hedge and hence investors take shelter in the yellow metal to tide over the inflation crisis.
Gold rates in India on March 10, 2022
Gold rates on the MCX for April contract traded higher by over 1% at Rs. 53275 per 10 gm. Likewsie, silver April futures also topped over 1% to again top over Rs. 70000 per kg. In the retail markets, gold prices corrected up by a sharp up to Rs. 1750 per 10 gm for 24 K gold.