Indian Gold Prices Slip Sharply Today: Before US Fed Meet Gold Rate Drop Rs. 350

In India, the gold market is slipping sharply now, before the US Federal Reserve, the country's central bank's monetary policy committee meeting. The US Fed is expected to raise its interest rate by 75 bps, and the market is getting prepared for it. Globally, commodities are plunging, while the US Government bond yields are jumping higher. The US stock markets have also been red today. Globally, gold rates have shown a bearish trend. In India, The 22-carat gold rate is quoted at around Rs. 46,580/10 grams, and the 24-carat gold rate is quoted at around Rs. 50,780/10 grams, falling by around Rs. 350-380/ 10 grams.

Additionally, the US Dollar is also on the verge of gaining now. US interest rate and gold rates are related adversely. So, if the Fed raises the interest rate by 75bps or more to control the mounting inflation, the gold rates are also expected to drop sharply further. According to reports, the US consumer confidence index dropped to 95.7, which has fallen from June's reading of 98.7, as the US Conference Board mentioned on Tuesday. So, for boosting consumer confidence and fighting inflation, US Fed is expected to take the hard way.

Already, 2022 is a tepid year for the gold market. After the Russia-Ukraine war, the yellow metal plunged sharply, and could not recover as before. However, a falling gold rate will be aiding the Indian retail gold market.

Today, the Comex gold futures were quoted at $1,716.30/oz, falling by 0.16%, from the last trading day. Yesterday it was last quoted at $1,719.10/oz. The yellow metal fell by 6.51% this year in the futures market. The spot gold prices were last quoted at $1719/oz, falling by 0.12%, from the last trading day. The US Dollar index quoted at 107.17, gaining by 0.65%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 50612/10 grams, surging by 0.15%, from the last trading day.