Gold Rates Fall In International Markets, US Dollar Up: Impacts On Indian Investors

Indian gold rates are flat today in the domestic markets. On April 6, the 22 carat gold rates are quoted at Rs. 47,800/10 grams, and the 24 carat gold rates are quoted at Rs. 52,140/10 grams, same as yesterday. On the other hand, in Chennai, 22 carat gold rate is quoted at Rs. 48,150/10 grams, while in Delhi, Hyderabad, Bangalore, Kolkata and Kerala 22 carat gold rate is quoted at Rs. 47,800/10 grams. The Russia-Ukraine war situation is not escalating at present moment, hence, gold rates are under pressure now.

The metal markets are marginally bearish now, as the US Fed is giving hawkish comments on inflation. Recently Federal Reserve governor Lael Brainard said, "it is of paramount importance to get inflation down." The US Fed can initiate more than one interest rate hike this year. This eventually has spiked the US Treasury yields higher, which has impacted the metal markets negatively.

Gold prices are marginally down in the spot markets and the futures markets. In the spot markets, gold has gone below the $1919/oz level. Investors are waiting for the release of the minutes from the last FOMC meeting of the US Federal Reserve. It will help them to anticipate the direction of the upcoming gold rates.

Additionally, some analysts are also thinking that the gaining cases of Covid in China due to the emergence of a new subtype of Covid is another concern. This can trigger inflation rates in China and the global picture. So, analysts are also expecting a marginal gain in gold prices and oil prices, if the inflation rate gains. The yellow metal is a hedge against inflation.

Today, the Comex gold futures were quoted at $1921.30/oz, falling by 0.32%, till last traded. Yesterday it was last quoted at $1927.50/oz. The spot gold prices are quoted at $1918.60/oz, falling by 0.29%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.63, gaining by 0.15%. In India, the MCX gold in June future was quoted at Rs. 51,394 grams, gaining only by 0.04%, till last traded.