Gold Rates In India Are On The Verge Of Falling: Check Rates For Investment

Indian gold markets are expected to be under pressure this week. The US dollar index is rising, US bond yields are thriving. The recently published inflation data in the US has slowed down marginally in April. It has stayed below 40 years high level. So, gold has lost strength as a hedge against inflation for the time being. The 22 carat gold rate is quoted at Rs. 47,750 falling by Rs. 100, and the 24 carat gold rate is quoted at Rs. 52,100/10 grams, falling by Rs. 100, today.

Commenting on the gold market trend, a Reuters report mentioned, "Gold prices fell on Tuesday as an uptick in the dollar and U.S. bond yields overshadowed support from concerns over soaring inflation, with bullion on track to decline for a second straight month." Now, traders and investors are looking forward to the U.S. nonfarm payrolls data due later this week, which will give an outlook on the economic and employment situation in the country. This data will be important for the investors because it will move the US Dollar index further, also it is known that the US Dollar index drives the gold rates. According to FXTM analyst, Lukman Otunuga stated, "The current price action suggests that gold is waiting for a fresh directional catalyst."

In the Indian context, Tapan Patel, Senior Analyst (Commodities) at HDFC Securities commented, "We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1,840 and resistance at $1870 per ounce. MCX Gold Aug support lies at Rs 50,800 and resistance at Rs 51,400 per 10 grams."

The Comex gold futures were quoted at $1844.0/oz, falling by 0.39%, from the last trading day. Yesterday it was last quoted at $1851.30/oz. The spot gold prices were last quoted at $1850.10/oz, falling by 0.27%, from the last trading day. The US dollar index in the spot market stood at 101.9,6 gaining by 0.53%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 50,991/10 grams, falling by 0.20%, from the last trading day.