Indian gold rates today have remained the same as yesterday and quoted at Rs. 48,200/10 grams for 22 carat gold rates, and the 24 carat gold rates are quoted at Rs. 52,580/10 grams. The gold markets are highly volatile in the international and domestic markets due to multiple factors, impacting the precious metal's rates.
Investors are now widely depending on gold along with other precious metals and the US dollar. In this uncertain geopolitical situation, the commodity markets and the US Dollar index are surging every day. On the same hand, the equity markets are falling down internationally. So, it is forcing investors to flock to safe-haven assets, and gold and the US dollar are the perfect choices for investors. The yellow metal and the US Dollar are adversely related. However, the current geopolitical situation is pushing both gold and the US dollar to stay bullish.
The CPI inflation has risen to 7.9% in February in the USA, and gold prices immediately went up sharply. In the Comex futures, gold was traded at around $2010/oz. As a hedge against inflation, the metal is attracting investors largely. The February inflation rate again is standing at a 40 years high range. In January, the CPI inflation was at 7.5%. The US Fed in the next monetary policy meeting can hike the interest rate to control inflation. Then gold rates can drop to some extent.
Talking about the high volatility in the gold markets, Gary Wagner, editor of TheGoldForecast.com told Kitco News, "This is the third occasion where I've seen these kinds of moves in gold. The first one occurred in the middle of 2011 when gold hit $1,920, which at that time was a record high. The second occasion where I saw this kind of action occurred just before August 2020, and that of course was when we hit the new record high of $2,088, and this is the third occasion. What I've never seen is the kind of intra-day volatility that we have seen. I'm addressing the 25th February when Russia invaded Ukraine we saw gold trade from high to low with a price range of $100. That's a tremendous range for a day."
Today, the Comex gold futures fell by 0.62% and were quoted at $1985.70/oz, till last traded. The spot gold prices are quoted at $1986.50/oz, falling by 0.59%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.50, gaining by 0.15%. In India, the MCX gold in April future quoted at Rs. 52,900/10 grams, falling by 0.64%, till last traded.