Gold rates, on December 4 have gained marginally, only by Rs. 50/ 10 grams in India. The global trend of gold rate is not very positive for the investors, however, profitable for common buyers. Today in India, 22 carat gold rates are quoted at Rs. 46,500/10 grams and 24 carat gold rates are quoted at Rs. 47,500/10 grams. However, gold rates in Chennai have gained by Rs. 380/10 grams, gold rates in Bangalore and Delhi have gained by Rs. 300/10 grams today.
Today the Comex gold futures gained by 1.21% and were quoted at $1782/oz, while the spot gold prices gained by 0.77%, and were quoted at $1783.6/oz till last traded. Yesterday Comex gold futures closed at $1760.7/oz. On the other hand, the US dollar index in the spot market stood at 96.13. Mirroring the same global gold rate trend, in India, the Mumbai MCX gold in February future quoted at Rs. 47,925/10 grams, gained by 1.11%, till last traded.
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
A falling gold rate is favorable for common Indian buyers in this wedding season; which will eventually increase the gold demand in the country. Gold is now trading on mixed fundamentals in the global markets. Gold used to be considered as a hedge against inflation, but now, this idea is also being debunked by some analysts, because of the volatile gold price trend.
Recently, US Fed Chair Jerome Powell sounded hawkish against inflation and indicated that they can accelerate the tapering speed in the country. The Bond purchase programme in the US can go back to the pre-pandemic level. So, gold rates internationally will fall again, with tapering acceleration. US Fed is being cautious that the new Covid variant cannot be as severe as the delta variant for the economy.
Amid the Omicron variant Covid pressure, gold rates are volatile both in the global markets and in India. During the first wave of the pandemic gold, rates gained massively, but the trend is under pressure now. Ravi Singh, Vice President & Head of Research, ShareIndia said, "Despite Omicron uncertainty, the ETF holdings are in downfall. Gold may remain under pressure for a few more trading sessions."