Gold Rates Rallied Above $1866/oz Globally, What Is The Expected Market Trend?

The international gold market is rallying now, inclining to reach the May 2021 level in November this year. Comex December gold futures recently crossed the $1866/oz mark on November 10, while it closed at $1863/oz on the next day. Spot gold prices are also being quoted at around $1863.4/oz at that time. Prices went a 5-months high range.

Investors and traders are bullish about the upcoming gold rate trend, as the inflation in the US has reached 6.2% in October. Amid multiple moves, US Fed could not restrict CPI inflation within 2%. The present rate is the highest in more than the last 3 years. As a hedge against inflation, gold is being played by investors now.

In line with the international trend, Indian gold rates are also increasing this month. Yesterday, in many Indian cities like Kolkata, Delhi, Bangalore, and Kerala gold rates have gained significantly by Rs. 700-850/10 grams. The same trend is expected to be followed today. Now, 22 carat gold rates are quoted at Rs. 47,350/10 grams and 24 carat gold rates are quoted at Rs. 48,350/10 grams. Since Dhanteras and Diwali, Indian gold rates were already on the verge of rising. After the USA's inflation data publication, the gold markets have seen a steep rise in prices.

(Also read: Indian Gold Rates Quoted At Rs. 47,340, On Nov 11, Surged Marginally)

Expert's opinion

Chris Vermeulen, chief market strategist at The Technical Traders thinks that gold and the mining stocks, in particular the GDXJ ETF which tracks mid-tier miners and junior explorers, will rally separately from the stock market. Vermeulen told Kitco News, "I don't think they're going to break out with the stock market as much. I think they're going to slowly keep warming up and creep to the upside and then just take off come late December, early January." "Once gold breaks out of its current range, the mining stocks will follow and "go ballistic," seeing potentially 100% returns in the next bull cycle," he added.

(Also read: USA CPI Inflation Soared 6.2%, Stock Markets Under Pressure, Assets Rise)