Indian Gold Market Remain Flat, Quoted At Rs. 47,650/10 Grams On March 31

In the past one week, gold markets in India have not seen much gain, as the international trend remained marginally bearish. Today, on March 31, 22 carat gold rates are quoted at Rs. 47,650/10 grams, and the 24 carat gold rates are quoted at Rs. 51,980/10 grams, remained the same as yesterday's rates.

Gold prices in the futures market today plunged below $1925/oz level, after reaching near $1940/oz level yesterday. On the other hand, the US Dollar index, in the spot market is marginally bullish today. Gold and the US dollar have an adverse relation, as the yellow metal is a Dollar dominated asset class. Additionally, a spike in the US Bond yield, triggered by the US Fed interest rate hike, has also dragged down the gold rate marginally. This gold market trend has impacted similarly in the Indian markets.

Gold rates, recently, surged in the international markets and India as a safe haven, as the Russia-Ukraine war brought major uncertainties to the global economic picture. Hence, traders and investors got worried. Equities started to fall and commodities started to boom. Investors started to buy commodities, which eventually led to a surge in gold rates. However, the trend is now expected to stay calm. Recently, after a diplomatic meeting in Istanbul, Russia has now indicated to give the war situation a second thought, after one month of invasion. Although Russia and Ukraine have a huge disparity in manpower and defense budget, this war has also weakened the Russian economy. Multiple economic sanctions also affected Russia's economy marginally. So, as the investors are now expecting a curb in attacks by Russia, the gold market is also staying under pressure.

Commenting on the gold market trend, shown by investors, Commodity strategists at TD Securities recently stated, "The latest easing of tensions comes at a time when rates markets are readying for the Fed to deliver a hawkish surprise to markets. While the yield curve may be bringing back whispers of a looming recession that could re-ignite investor interest in gold, ETF flows have not historically been strongly associated with the yield curve during a hiking cycle. This suggests that the strong ETF inflows have rather been associated with safe-haven appetite, which leads to downside risks as the negotiators continue to work towards a ceasefire."

Today, the Comex gold futures were quoted at $1925.80/oz, falling by 0.68%, till last traded. Yesterday it was last quoted at $1939.0/oz. The spot gold prices are quoted at $1924.0/oz, fell by 0.51%, till last traded. On the other hand, the US dollar index in the spot market stood at 97.82. In India, the MCX gold in June future was quoted at Rs. 51,565 grams, falling by 0.41%, till last traded.