For Quick Alerts
For Daily Alerts

Gold Rates On The Verge Of Falling: Reaction After US Fed's Monetary Policy Meet


Gold rates fell sharply today after the US Federal Reserve concluded its monetary policy meeting. Indian gold rates reacted similarly and fell by Rs. 400/10 grams. Earlier, analysts expected that the US central bank will complete its tapering process, additionally, it will announce an interest hike rate. However, Fed Chair Jerome Powell said that they will keep the interest rate the same, near zero. The economic developments are not considered good, the employment situation is not well. So, the Fed decided that they will keep the interest rate unchanged to support the economy for the time being. But they have also mentioned, that 'soon' the interest rate can be raised.

Gold Rates On The Verge Of Falling: Reaction After US Fed's Monetary Policy Meet

If the Fed hikes interest rate in March, the government bonds will be profitable, and the gold market along with equity markets can weaken. At that time, investors would prefer to take shelter under the bonds. With lower demand, gold rates will further drop. Gold investors and traders are anticipating this possibility now, and it is also being impacted at present.

As the gold market is falling, the US Dollar index has gained sharply in the global markets. Gold and US dollars have an adverse relationship. As the currency fell, gold gained, and vice-versa.
Gold prices, on January 27, 2022, fell by Rs. 400/10 grams today for 22 carat gold and fell by Rs. 190/10 grams for 24 carat gold. Yesterday, India has seen a significant fall in the gold market of around Rs. 1900/10 grams. Today, the 22 carat gold prices are quoted at Rs. 45,550/10 grams and 24 carat gold rates are quoted at Rs. 49,640/10 grams. In Chennai, Bangalore, and Hyderabad, gold rates dropped by Rs. 630-400/10 grams today.

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

City22 carat (INR/10 Grams)24 carat (INR/10 Grams)

The Comex gold futures fell by 1.07% and were quoted at $1810.10/oz, till last traded. On the earlier day, Comex gold futures closed at $1829.7/oz. The spot gold prices were quoted at $1809.30/oz, fell by 0.61%, till last traded. The US dollar index in the spot market stood at 97.07, gaining by 0.61. However, in India, the MCX gold in February future quoted at Rs. 48,204/10 grams, fell by 1.32%, till last traded.

Read more about: gold price gold inflation
Story first published: Thursday, January 27, 2022, 18:26 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X