Gold is a US dollar-dominated assets class, and the metal holds an adverse relationship with the currency. Significantly, this week has been a strong period for the precious metal, after the publication of US inflation data for December. The US dollar index started to fall in the international markets, and most of the asset classes gained a strong position. In India, gold rates also surged for a straight 1 week, only today the metal fell marginally.
The gold market has already surprised investors and traders in the past 1 week, at it was quoted mostly above $1830/oz, unexpectedly. Some of the analysts earlier expected that the gold rates can fall below $1650/oz, after Fed's interest rate hike. However, the slow economic growth and poor employment situation can impact Fed's decisions on the rate hike, although inflation rates are quite concerning now. Fed's upcoming policy measures will decide the gold markets' paths further.
Additionally, an increasing crude oil price and rising demands are helping the gold rates to grow. "Higher oil does make it more expensive to get gold out of the ground. We could see constraints in the gold supply being mined. Plus, the real demand for gold is still strong. The US Mint saw 12-year highs in gold sales, while the Perth Mint saw 10-year highs. Average retail investors are still buying gold at the fastest pace in ten years," Gainesville Coins precious metals expert Everett Millman told Kitco News.
Indian gold rates today, on January 22, 2022, gold rates have fallen by Rs. 110/ 10 grams. The 22 carat gold prices are quoted at Rs. 47,530/10 grams and 24 carat gold rates are quoted at Rs. 49,530/10 grams. Similarly, in Chennai gold rate dips by Rd. 60, while in Bangalore, Hyderabad, and Kerala the yellow metal dips by Rs. 150/10 grams.
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)|
The Comex gold futures dips marginally by 0.59% and were quoted at $1831.8/oz, till last traded. On the earlier day, Comex gold futures closed at $1842.6/oz. The spot gold prices were quoted at $1836.60/oz, fell by 0.21%, till last traded. The US dollar index in the spot market stood at 95.65. On the other hand, in India, the MCX gold in February future quoted at Rs. 48,236/10 grams, dips by 0.30%, till last traded.