Gold Rates Drop Below $1732/oz, US Dollar At 52-Week High, In 2022 Gold Fell 5.58%

International gold markets are significantly bearish today, the yellow metal has fallen below $1732/oz in intra day trading. This has also impacted the Indian gold markets, which have remained flat. Today, the 22-carat gold rate is quoted at around Rs. 46,950/10 grams, and 24-carat gold rate is quoted at around Rs. 51,210/10 grams. The major reason gold rates are sharply falling today is the gaining track of the US Dollar index. Today, again the US Dollar index has surged to a fresh 52-week high level.

It is known that gold is a dollar-dominated asset class. So, when the US dollar index surges, the yellow metal becomes cheaper for the other currency holders, and vice versa. However, today, INR has also fallen. Hence, Indian gold rates have remained flat. The only factor that can enhance gold prices at present is the high inflation rate. For around two years, in 2020 and 2021, gold prices surged due to high inflation rates in the major countries including India and the US. However, now, after the interest rate hikes, in order to control the high inflation rates, gold rates are dropping. Additionally, after the Russia-Ukraine war, gold rates fell dramatically. According to Comex data, gold prices have fallen by around 5.58% in 2022.

Significantly, investors are waiting for the CPI report for June. On Wednesday, the consumer price index or CPI report for June will be published. Some analysts are expecting it to gain 8.5%, on a year-on-year basis. In the May report, CPI was up 8.6% annually. The CPI data will help gold to find its further roadmap.

Today, the Comex gold futures were quoted at $1,731.90/oz, falling by 0.59%, from the last trading day. Yesterday it was last quoted at $1,739.70/oz. The spot gold prices were last quoted at $1734.70/oz, falling by 0.51%, from the last trading day. The US Dollar index quoted at 108.22, surging by 1.06%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 50665/10 grams, falling by 0.22%, from the last trading day.