Gold rates in India are falling rapidly for the last 4 days as the investors are expecting an interest rate hike in the USA, 'soon', as Fed Chair Jerome Powell indicated after the monetary policy meeting. Till March, the rate will remain the same, at near zero. US dollar index is gaining strength in the global market for the same reason. This falling gold rates trend can further increase the gold demands globally.
The World Gold Council (WGC), in the quarterly and annual gold trends report, stated that the physical gold demands have gained by 10% to 4021 tonnes in 2021, rather than gold-backed ETF, which has seen a comparatively dull market. Additionally, in the last quarter of 2021, gold demands increased by 50%. It stood at the highest position in the past 10 years. Significantly, due to expectations regarding the interest rate hike by the US Fed, gold rates plunged sharply. So, it helped investors to gain the gold demands.
The WGC report added, "Demand recouped much of the Covid-related losses sustained during 2020. Demand for gold in the consumer-driven jewelry and technology sectors recovered throughout the year in line with economic growth and sentiment, while central bank buying also far outpaced that of 2020." Gold has been one of the most popular investment instruments against inflation, and due to the pandemic, it achieved more popularity. So, as the gold prices are plunging now, this can further push the gold demands.
Gold prices, on January 28, 2022, fell by Rs. 350/10 grams today for 22 carat gold, and fell by Rs. 190/10 grams for 24 carat gold. Today, the 22 carat gold prices are quoted at Rs. 45,150/10 grams, and 24 carat gold rates are quoted at Rs. 49,630/10 grams. In Chennai, Bangalore, Kerala, Kolkata, and Hyderabad, gold rates dropped by Rs. 250-350/10 grams today.
Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
The Comex gold futures fell by 0.14% and were quoted at $1795.60/oz, till last traded. On the earlier day, Comex gold futures closed at $1793.10/oz. The spot gold prices were quoted at $1793.70/oz, fell by 0.24%, till last traded. The US dollar index in the spot market stood at 97.34, gaining by 0.12. However, in India, the MCX gold in February future quoted at Rs. 47,803/10 grams, fell by 0.37%, till last traded.