The international spot gold market is closed today on Saturday, but the Indian Bullion Jewellers Association (IBJA) fixed the gold rates in India depending on the current market trend. Today, on September 11, gold prices remained the same in the domestic market, as yesterday's quotations. The price of 22 carat gold is quoted at Rs. 46,070 today, while the 24 carat gold is quoted at Rs. 47,070 per 10 grams.
Yesterday, when the market was open, the Comex gold rate dropped by 0.44% at $1792.10. International spot gold price was down by 0.41% at $1787.80/oz till last traded. MCX gold in October future was down by 0.40% as of 11.29 PM IST September 10, Friday, till the market was open. Although the US dollar index, on the spot market, did not change till the last traded. Gold is a dollar-dominated asset and the prices get influenced by the US dollar index. However, in most of the Indian cities gold rates have dropped by a tad than yesterday.
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
According to media reports, "Many experts in the space are warning investors of a possible sell-off in US equities, and it just might be what gold needs this fall." Gold has now dropped below the psychological high level of $1800/oz. But the gold investors are relying on the metal expecting a gold price hike, in absence of the US Fed tapering. "Gold has simply been a correlation trade to interest rates and FX trends; it's a casualty to the USD/rates' path of least resistance in both being higher into a Fed taper", commented Nicky Shiels, MKS PAMP GROUP head of metals strategy.
Bloomberg Intelligence senior commodity strategist Mike McGlone stated, "Just some reversion in the steepest gold discount to the S&P 500 since 2005 may indicate a spark to break the metal out of its bull-market cage. The gold-to-S&P 500 ratio has dipped below the extreme from about three years ago that broke gold away from the gravity pull around $1,270 an ounce toward its record high of about $2,075 in 2020. About $1,800 is the lock-in price since July 2020. When equities eventually revert a bit, gold stands to be a primary beneficiary, as we see it." This week too, gold rates are not expected to hike significantly, the present market trend indicates.