Gold Rates Increase Around Rs. 1350 In India In Past 2 Days: See Why?

Indian gold rates have been sharply bullish in the past two days. Yesterday gold prices jumped by around Rs. 1200, and today the rates gained by around Rs. 150/10 grams. Today, the 22-carat gold rate is quoted at around Rs. 48,000/10 grams, and 24-carat gold rate is quoted at around Rs. 52,340/10 grams. Yesterday, the union government published a notification mentioning the basic import duty on gold will be hiked to 12.5% from the earlier level of 7.5%. So, the gold rates in the country will be far more expensive.

Already the retail gold market is not running quite well in the country, as the prices are high and no wedding season is coming soon. Now, these additional charges will hamper retail sales. India imports a large amount of gold from foreign markets, as the country's gold production is not adequate to meet the domestic demands. So, the hike in the basic import duty will push the gold rates higher.

Today, the Comex gold futures were quoted at $1,812.90/oz, gaining by 0.30%, from the last trading day. Yesterday it was last quoted at $1,807.30/oz. The spot gold prices were last quoted at $1813.90/oz, gaining by 0.30%, from the last trading day. However, the US dollar index in the spot market surged to 105.10. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 58182/10 grams, falling by 1.20%, from the last trading day. According to a report by Kitco News about the international market trend, "The gold market continues to push back towards $1,800 an ounce as the U.S. manufacturing sector sees weaker than expected growth in June, the Institute for Supply Management (ISM). Friday, the ISM said that its manufacturing Purchasing Managers Index dropped to a reading of 53%, down from May's reading of 56.1. The data missed expectations as economists were looking for a decline to 54.6%."

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow: