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Gold Rates Volatile In International Market, Waiting For Fed's Interest Rate Hike Decision

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In the international markets, the gold rates are quite volatile now. The precious metal, as of now is holding a steady position against high inflation rates, globally. The metal is being quoted above $1841/oz today, but this price range can be uncertain in the upcoming days. The US Federal Reserve can initiate an interest rate hike this year to control the high inflation rate. So, the gold market will come under pressure.

 
Gold Rates Volatile In International Market, Waiting For Fed's Interest Rate Hik

Economists at Bloomberg commented, "The main goal of the meeting is for the FOMC to telegraph a March rate hike and balance-sheet runoff this year, and we expect it will do so cautiously - emphasizing the uncertainty and downside risks to growth, given that we are still in the middle of the omicron wave." Within 2 months, the Fed might hike the rate.

In addition to that, the omicron variant Covid is spreading largely, and it is also influencing the price increases. So, this might push the US Fed to force a faster pace of interest rate hike. Goldman economist David Mericle recently stated, "Our baseline forecast calls for four hikes in March, June, September, and December. But we see a risk that the [Federal Open Market Committee] will want to take some tightening action at every meeting until the inflation picture changes."

Mericle added, "We also increasingly see a good chance that the FOMC will want to deliver some tightening action at its May meeting when the inflation dashboard is likely to remain quite hot. If so, that could ultimately lead to more than four rate hikes this year."

Indian gold prices, on January 24, 2022, gold rates have gained by Rs. 130/ 10 grams. The 22 carat gold prices are quoted at Rs. 47,650/10 grams and 24 carat gold rates are quoted at Rs. 49,650/10 grams. In Chennai and Delhi gold rates fell by Rs. 40 and Rs. 140, respectively, while in Kolkata the yellow metal gained by Rs. 110/10 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)
Mumbai47,650/-49,650/-
Delhi47,650/-51,980/-
Bangalore45,490/-49,630/-
Hyderabad45,490/-49,630/-
Chennai45,830/-50,000/-
Kerala45,490/-49,630/-
Kolkata47,800/-50,500/-

The Comex gold futures gained by 0.55% and were quoted at $1841.90/oz, till last traded. On the earlier day, Comex gold futures closed at $1831.8/oz. The spot gold prices were quoted at $1844.0/oz, surged by 0.40%, till last traded. The US dollar index in the spot market stood at 95.74, gaining by 0.09%. On the other hand, in India, the MCX gold in February future quoted at Rs. 48,580/10 grams, gains by 0.69%, till last traded.

Story first published: Monday, January 24, 2022, 15:11 [IST]
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