Gold rates in the global markets are under pressure now. India is the second-largest consumer of gold, while the country is the biggest importer of gold from foreign markets. In India, not enough gold is produced to meet huge domestic demands. So, the country has to import gold from foreign markets. Hence, the gold rates in the domestic markets are decided by IBJA based on international gold rates and domestic taxes, cess. As global gold rates are marginally down now, in the Indian markets too, the yellow metal is falling.
Indian gold rates are marginally bearish today, on April 2. The 22 carat gold rates are quoted at Rs. 47,950/10 grams falling by Rs. 150, and the 24 carat gold rates are quoted at Rs. 52,480/10 grams, gaining by Rs. 10/10 grams.
Recently, RJO Futures senior market strategist Frank Cholly commented, "Gold has had a tendency to do a lot of consolidation before making a move up. We had a nice rally from February to mid-March. Now, gold is going through a bit of a correction. Markets are basing a bottom where we peaked out in mid-November. And $1,900-1,925 is showing to be good value. The market is bouncing along that range. If we could get a close or a good pop above $1,950-75, we won't have trouble getting above $2,000. And in Q2, we can get above $2,000."
On the other hand, apart from the Russia-Ukraine tensions, the US Bond yield left a significant impact on gold rates in the international markets. "The inversion of the 10y-2y Treasury yield spread this week led to predictable speculation that the Fed's interest rate hikes would quickly push the U.S. economy into recession. Given its impressive track record in predicting U.S. recessions - it's been almost 50 years since the last false positive - it would seem foolish to doubt that bearish recession speculation," commented Capital Economics chief North America economist Paul Ashworth. With the growth in US Bond yield, gold rates are under pressure now.
Today, the Comex gold futures were quoted at $1928.50/oz, falling by 1.30%, till last traded. Yesterday it was last quoted at $1954.0/oz. The spot gold prices are quoted at $1926.60/oz, fell by 0.60%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.54. In India, the MCX gold in June future was quoted at Rs. 51,680 grams, falling by 0.93%, till last traded.