Indian gold prices slipped marginally today on October 19, by Rs. 560/10 grams than yesterday. Today, 22 carat gold rates are quoted at Rs. 46,510/10 grams and 24 carat gold rates are quoted at Rs. 47,510/s10 grams. The Comex gold future hiked by 0.76% and was quoted at $1779.2, while the spot gold prices hiked by 0.67% and were quoted at $1776.60/oz till 4.44 PM IST. On the other hand, the US dollar index in the spot market slipped to 93.13 at the same time, it dropped by 0.41%. In India, the Mumbai MCX gold in October future gained only by 0.31% today till 4.39 PM IST and was quoted at Rs. 47,437/10 grams.
Indian gold rates depend on international gold prices because India mostly imports this precious metal from foreign markets. India is now the second-largest importer of gold. Commenting on the relation between gold demand and inflation, the World Gold Council in a recent report said, "In common with investors around the world, Indian savers turn to gold as a hedge against inflation. For each one percentage point increase in inflation, gold demand increases by 2.6%." later it added, "Tax regime: an increase in the rate of import duties since 2012 has depressed demand for gold by 1.2% per year."
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
Frank E. Holmes told Kitco News, "Gold rose to the highest in nearly a month as Treasury yields and the dollar slumped amid concerns rising prices may hinder a nascent economic recovery. The yield on the 10-year Treasury note fell after an initial increase following a US inflation report that showed a faster-than-expected rise in consumer prices last month. The greenback dipped to a session low. Both movements are helping boost demand for non-interest-bearing bullion. However, profit-taking on Friday trimmed the weekly gain."