Indian Gold Market Down Sharply Today, Falls By Rs. 360, US Inflation at 8.3% In August

Indian gold rates are sharply down today, on September 14, on weak global cues. Yesterday, US Labor Department announced that the US CPI Inflation stood at 8.3% YoY in August, and commodity markets along with the stock markets faced a major sell off surprisingly. In July, inflation was recorded to be at 8.5%. Although inflation fell marginally in August, but came higher than expected. Analysts anticipated that inflation could stay at around 8% in August. However, a marginal fall in inflation helped the US Dollar index and bond yields higher and pulled the gold markets down.

Today the 22-carat gold rate stood at Rs. 46,400/10 grams, and 24-carat gold rate stood at around Rs. 50,620/10 grams, falling by Rs. 330 and Rs. 360, respectively. "A hot U.S. inflation report "wrong-footed" the marketplace Tuesday, pushing gold and silver prices solidly down and sending the U.S. dollar index and bond yields higher. The U.S. stock market tumbled but the precious metals could garner no strong safe-haven bids. October gold was last down $27.20 at $1,703.70 and December silver was down $0.425 at $19.435," a Kitco News report mentioned today.

On a monthly basis, the August CPI increased by 0.1% from July, although analysts expected a fall. The food and energy component of the August CPI increased by 0.6%. After this report, economists are anticipating that the US Federal Reserve's FOMC will raise its interest rate again in September. The Fed can raise the rate by 75 bps, which will again impact the gold and silver markets.

Today, the Comex gold futures were quoted at $1,710.70/oz, down by 0.39%, till last traded. Yesterday it was last traded at $1,717.40/oz. The yellow metal fell by 7.1% this year in the futures market. The spot gold prices were last quoted at $1700.50/oz, down by 0.14%, from the last trading day. The US Dollar index is quoted at 109.73, fell by 0.8%, till last traded. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 50005/10 grams, down by 0.27%, from the last trading day.

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)
Mumbai	46,400/-	50,620/-
Hyderabad	46,400/-	50,620/-
Kerala	46,400/-	50,620/-
Kolkata	46,400/-	50,620/-
Delhi	46,550/-	50,780/-
Bangalore	46,450/-	50,680/-
Chennai	47,010/-	51,280/-