Gold Prices Dip By Rs. 1050 In 5 Days: 'Investors Covering Losses Elsewhere'

The gold market in India has been sharply bearish in the past week. On May 14, the metal's prices dropped by Rs. 1250/10 grams in the past 5 days and dropped by Rs. 200/10 grams today. The 22 carat gold rate is quoted at Rs. 46,250, and 24 carat gold rate is quoted at Rs. 50,450/10 grams.

In the international market, the precious metal prices have fallen by 4% this trading week, which is a sharp drop since mid-June, 2021. Investors are looking out for other lucrative investment opportunities. Both the stock markets and the commodity markets are sharply falling now. In the mid of this week, Indian stock markets have also seen a major crash. So investors are quite worried now.

The recent interest rate hike by the major economies of the US and the UK has triggered global investors to look out for government bonds. The interest rate hike is leading to a higher bond yield. The rate hike is also expected to keep the high inflation rate under control in the future. The US can also initiate multiple rate hikes in the upcoming months. According to Gainesville Coins precious metals expert Everett Millman, "Gold's decline is investors covering losses elsewhere. Liquidation for traders and investors to make up for major losses seen in equity markets. Gold is one of the easiest things to convert into cash when times are tough."

Today, the Comex gold futures were quoted at $1810.30/oz, falling by 0.78%, from the last trading day. Yesterday it was last quoted at $1824.60/oz. The spot gold prices are quoted at $1813.20/oz, falling by 0.51%, from the last trading day. However, the US dollar index in the spot market stood at 104.45, falling by 0.20%. In India, the MCX gold in June future was quoted at Rs. 49,909/10 grams, falling by 0.53%, from the last trading day.