Gold Rates Increase: High Inflation Pushed Gold Rates Above $1995/oz

Gold, as a commodity is attractive to investors as a safe haven. The soaring inflation rate in the USA coupled with the Russian-Ukraine geopolitical tensions is helping the gold rates to gain in the global markets. Gold rates are expected to surge till these two factors will dominate the markets. Hence, every dip will be a good opportunity for the investors. According to Ravi Singh, Vice President and Head of Research, ShareIndia, "Buy zone will be near Rs. 53200 for the target of Rs. 53500. The sell zone will be below Rs. 53000 for the target of Rs. 52800." In India, on April 18, 22 carat gold rates are quoted at Rs. 49850 and 24 carat gold rates quoted at Rs. 54380/10 grams.

The risk sentiments across the markets are influencing the investors to the safety of bullion. Along with gold, crude oil prices are also on the verge of gaining. Additionally, interest rate gain and balance sheet reductions are also expected to trigger the markets. However, the interest rate gain by the US Fed has taken place once recently, which could not impact the metal for a long time. Anticipating uncertainties in the markets, gold rates are increasing in international markets.

India is one of the biggest gold consumers globally, however, the country's gold production is not adequate to meet the domestic demands. So, India needs to import gold from foreign markets.

Gold rates in India are based on international gold prices and the taxes in the domestic markets. Every day the IBJA fixes the gold prices for different cities. At present, gold prices are bullish in Indian cities, this is impacting the retail gold demands. "Gold silver prices today are showing positive opening and could test its resistance levels of $2000 per troy ounce and $27 per troy ounce respectively. Gold has support at $1956-1940, while resistance is at $1984-2000," stated Rahul Kalantri, VP Commodities, Mehta Equities.

The Comex gold futures were quoted at $1997.40/oz, gaining by 1.13%, till last traded. Yesterday it was last quoted at $1974.90/oz. The spot gold prices are quoted at $1994.30/oz, gaining by 0.97%, till last traded. On the other hand, the US dollar index in the spot market stood at 100.67, gaining by 0.16%. In India, the MCX gold in June future was quoted at Rs. 53,523 grams, falling by 1.00%, till last traded.