In the Indian markets, gold rates are gaining this week. The 22 carat gold rates have surged by Rs. 350/10 grams, and 24 carat gold rates have surged by Rs. 380/10 grams. The 22 carat gold rates are quoted at Rs. 47,050/10 grams, and the 24 carat gold Rs. 51,330/10 grams. Gold rates have gained by Rs. 950 in the past 3 days in India.
Gold rates in the international markets are behaving bullish, which is impacting the Indian markets similarly, while the equity markets are going down this week. Interest rate hikes, mounting inflationary pressures, sinking corporates' profitability, falling retail sales, low demands, poor housing starting data, along with a falling US dollar index are helping the gold rates to jump. However, these reasons reacted heavily in the equity markets. The US stock markets crashed two days ago and closed bearish till yesterday. Nasdaq fell by 0.30% till last traded on Friday. But, in India, the stock markets corrected marginally till the last trading day. Nifty closed at 16,266.15 points, up by 2.89%, and Sensex closed at 54,326.39 points, up by 2.91%.
Equity investors have lost huge amounts in the past week; mutual funds and SIPs have also reflected the same trend. So, many investors are looking forward to alternative options. Gold is one of the most popular alternative investment options with physical gold, gold ETFs and digital gold. If you are a long-term investor, then you can think about investing in gold. Although the gold rates are correcting now, the yellow metal will give good returns in the long run, and it can beat inflation. However, both the stock markets and gold markets are volatile. So, inflation and corporate profitability will decide the future roadmap for gold. If investors are willing to take the risk and want to buy stocks with lower prices, then stocks can be good opportunities. Otherwise, gold, as a hedge against inflation can offer lucrative returns in the long term.
Today, the Comex gold futures were quoted at $1845.10/oz, gaining by 0.21%, from the last trading day. Yesterday it was last quoted at $1841.20/oz. Similarly, the spot gold prices were last quoted at $1847.70/oz, gaining by 0.28%, from the last trading day. The US dollar index in the spot market stood at 103.02, showing a bearish trend. In India, the MCX gold in June future was quoted at Rs. 50,845/10 grams, gaining by 0.60%, from the last trading day.