Indian Gold Rate Drops Sharply By Rs. 700, On Oct. 10, On Weak Global Cues: Check Rates

Indian gold rates have dropped sharply, by Rs. 700 to Rs. 770/ 10 grams, for 22-carat and 24-carat gold. Today, on October 11, the 22-carat gold price is quoted at Rs. 46900, and the 24-carat gold price is quoted at Rs. 51160. Silver rates have also fallen by Rs. 600/kg in India, quoted at Rs. 58,900. The global gold market is also under pressure this month, due to the rising US Dollar index against its counterparts. In the Comex, December gold futures dropped to a fresh daily low of US$ 1,667.90/oz. Indian gold prices depend on the international markets, as the country needs to import a large amount of gold to meet domestic demands.

Gold and silver prices finished lower on Monday following Friday's decline due to strong US employment data for September. This week, the commodity markets are expected to remain under pressure, ahead of the US inflation data. The US Federal Reserve is trying to keep the inflation rate within 2%, however, the central bank is failing. The latest employment data has only given some optimism to the Fed. Officials are expected to stay firm on their pathway of raising the interest rate to control inflation. The rising interest rate means that assured income options like bond yields will be more profitable than volatile assets like gold and silver.

Meanwhile, the 2-year Treasury bond yield increased to around 4.343%, and the 10-year U.S. Treasury yield increased sharply to around 3.992%. The US Dollar index increased to 113.44 at the time of writing.

However, ahead of the festive season in India, the falling gold rates are expected to boost retail demands. Investors can buy the yellow metal as a hedge now, for high returns in the long term aiming to beat the inflation rate.