Indian Gold Market Reacts Positively To US Fed Rate Hike, Strong Global Cues: Check Rates

Today, the Indian gold markets surged marginally, after showing a bearish trend over the last two weeks. Yesterday, the US Federal Reserve announced a 75 bps rate hike to control the country's inflation rate as a hawkish policy measure. However, as this rate hike was much anticipated by traders, markets have absorbed it globally. Gold and silver rates are also showing a positive trend today.

Today, on September 20, in India the 22 carat gold rates quoted at Rs. 46,000, and the 24 carat gold rates quoted at Rs. 50,200/10 grams, surging by Rs. 200 to Rs. 40 respectively. Indian silver rate stood at Rs. 5800/100 grams, gaining by Rs. 60 today.

Although the US Dollar index is at its peak, quoted at a 20 years high range now, the commodity markets are ignoring the trend. Commenting on the matter, analyst Jim Wyckoff told Kitco News, "Gold and silver prices are firmer in midday U.S. trading Thursday. Heightened geopolitical concerns have prompted some mild safe-haven demand and are keeping the speculative bears on the sidelines late this week. Short covering in the futures markets was featured in gold and silver today, following recent losses.

Today, the Comex gold futures were quoted at $1,677.60/oz, up by 0.11%, till last traded. Yesterday it was last traded at $1,675.70/oz. Till today, the yellow metal fell by 8.7% this year in the futures market. The spot gold prices were last quoted at $1672.10/oz, down by 0.16%, from the last trading day. The US Dollar index gained to 111.30, up by 0.59%, till last traded. Today, in India, the Mumbai Commodity Exchange (MCX) gold in October future is quoted at Rs. 49995/10 grams, up by 1.12%, from the last trading day. The MCX silver in December future is quoted at Rs. 58020/10 grams, up by 1.26%, from the last trading day.

"Technically, October gold futures bears have the solid overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at this week's high of $1,687.00 and then at $1,700.00. First support is seen at this week's low of $1,651.50 and then at $1,635.00," Jim Wyckoff added.

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	46,000/-	50,200/-
Hyderabad	46,000/-	50,200/-
Kerala	46,000/-	50,200/-
Kolkata	46,000/-	50,200/-
Delhi	46,150/-	50,350/-
Bangalore	46,050/-	50,240/-
Chennai	46,750/-	51,000/-