Gold Rates Gain Marginally To Rs. 47750 In India Today, Good Time To Invest?

Today, gold rates only gained marginally, reflecting the international trend. In the domestic markets, today 22 carat gold rate is quoted around Rs. 47750/10 grams, and 24 carat gold rate is quoted around Rs. 52080/10 grams.

Gold is an important commodity investment considering its long term returns. The yellow metal is a traditional investment tool for Indians due to its auspicious value. However, this month, the sales of gold have fallen sharply due to high prices. Additionally, no wedding season or festive season is coming in the near future.

The high inflation rate in the US is a significant reason behind this price rise. Although the US Fed is trying to control the inflation rate by hiking interest rates. Recently the Fed initiated a 75 bps rate hike and is expected to initiate more hikes this year. This left an immediate impact on the commodity markets including gold, and prices have fallen sharply both in Indian and global markets. But the yellow metal has bounced back soon. Investors are much worried about the inflationary pressures now.

With an 8.6% YoY gain in the inflation rate in the last month in the US, investors are trying to obtain gold as a hedge against it. However, a fall in the gold prices, with adequate monetary policy by the US Fed, can increase the retail gold demands in India.

The Comex gold futures were quoted at $1838.40/oz, falling by 0.11%, from the last trading day. Yesterday it was last quoted at $1840.60/oz. The spot gold prices were last quoted at $1840.20/oz, gaining by 0.03%, from the last trading day. The US dollar index in the spot market stood at 104.42. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 50,727/10 grams, falling by 0.21%, from the last trading day.