Indian Gold Market Falls Before Sovereign Gold Bond Opening Date, US Dollar On Fire

Indian gold market falls before the sovereign gold bond (SGB) scheme opening date, as the US Dollar index (at 108.03) is on fire globally. On August 20, the 22-carat gold rate stood at Rs. 47,800/10 grams, and 24-carat gold rate stood at around Rs. 52,150/10 grams. According to government data, the upcoming SGB series will open from August 22 - August 26, 2022, and the issue price has been fixed at Rs. 5,197/gram, tracking the last 3 days' 24-cart gold rates in the domestic markets. SGBs are one of the most secured digital gold investment opportunities in India, with assurance from the RBI.

Indian gold rates depend on the global market trend, hence domestic investors are following the US Fed's monetary policy and US Bond yields, to anticipate the market trend. The international gold market is also closely looking forward to the US Fed's monetary policy. RJO Futures senior commodities broker Bob Haberkorn told Kitco News, "The Fed will likely hold the line on higher rates going forward. That's why gold is slow and steady lower right now. If there is some change at the Jackson Hole symposium, it could impact the gold market significantly. But that is not anticipated. Yet, they could say something about the housing market slump or the retail sector. Overall, the stock market is not in bad shape considering the rate hike talk. Is the equity market telling us that the Fed won't be as aggressive? The gold market tells us a different story because gold competes against Treasury yields."

Today, the Comex gold futures were quoted at $1,760.30/oz, falling by 0.62%, from the last trading day. Yesterday it was last quoted at $1,771.20/oz. The yellow metal fell by 4.42% this year in the futures market. The spot gold prices were last quoted at $1748.60/oz, gaining by 0.63%, from the last trading day. The US Dollar index is quoted at 108.03. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 51505/10 grams, falling by 0.19%, 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	47,800/-	52,150/-
Hyderabad	47,800/-	52,150/-
Kerala	47,800/-	52,150/-
Kolkata	47,800/-	52,150/-
Delhi	47,950/-	52,310/-
Bangalore	47,850/-	52,200/-
Chennai	48,300/-	52,690/-