The international gold markets are seeing corrections as the metal missed to reach its all-time high level of $2088/oz (which was achieved in 2020). Recently gold reached $2078/oz, close to all time high level, however, as the Russia-Ukraine war is having some diplomatic progress, the metal's prices are being volatile. The report informed, on Tuesday, gold faced the largest single-day loss in 2022, by losing 3.49% in value.
Indian gold prices have dropped by Rs. 310/10 grams for 22 carat gold rates and dropped by Rs. 340/10 grams for 24 carat gold rates. The 22 carat gold rates are quoted at Rs. 4810/10 grams, while the 24 carat gold rates are quoted at Rs. 5247/10 grams in the domestic markets.
In India, gold rates have risen significantly in March due to the geopolitical crisis. According to recent reports, Russia has attacked a base near the Polish border. Additionally, a barrage of Russian missiles has hit Yavoriv International Centre for Peacekeeping and Security, Ukraine, which is a base located 15 miles distant from the Polish border. This attack has killed 35 people and wounding 134, according to Ukrainian official data. These uncertainties are keeping the gold rates much volatile.
CIBC World Markets chief economist Avery Shenfeld told Kitco News, "Investors have done a U-turn in their assessment of what Russia's invasion of Ukraine will mean for US monetary policy ahead. A brief flirtation with the idea that the war's economic costs would temper the rate hike path has been quickly reversed, with the February CPI data being a further reminder that inflation is breaking out in just about every major category of goods and services."
Today, the Comex gold futures fell by 0.30% and were quoted at $1976.70/oz, till last traded. The spot gold prices are quoted at $1974.20/oz, falling by 0.91%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.18, gaining by 0.16%. In India, the MCX gold in April future quoted at Rs. 52,634 grams, falling by 0.46%, till last traded.