Indian Gold Rate Falls Sharply To Rs. 46,250: Buy Gold This Dhanteras At Lower Price?

Diwali and Dhanteras will be celebrated in India next week when buyers will invest in gold and silver as it is considered to be auspicious. As the gold prices and silver prices are falling this month, it is good news for Indians. They can purchase gold at lower costs now. Today, on October 21, in India the 22-carat gold rate fell to Rs. 46,250, and the 24-carat gold rate fell to Rs. 50,450/10 grams. Retail gold and silver sales are expected to increase this Diwali.

Analysts at Motilal Oswal about the current volatility said, "2022 has been a highly volatile year for Gold and silver prices. On domestic front both metals on YTD basis, have given returns of 5% and -9% respectively. Geopolitics, Central banks action and Inflationary concerns are themes that are not only driving precious metals, but also triggering volatility in other asset classes...It also gets important to watch the price trend for gold that is currently stuck between tussle of bulls and bears. Extreme negatives does trigger bargain buying for gold and so it is important for medium to long term investor to see a broader picture. Except for a few dips, overall trend for gold has remained positive, and the returns also are quite decent."

With the rising US bond yields, gold and silver prices, including other commodity prices are also falling in the international markets. Meanwhile, the US 2-year Treasury bond yield was quoted at around 4.62%, and the US 10-year Treasury yield was quoted at around 4.301%, at a historically high level. Today, the US Dollar index is quoted at 113.56, at the time of writing.

Commenting on the country's gold storage Motilal Oswal in the report stated, "Also, when we talk about demand, it becomes very important to discuss central banks gold buying spree. Slowly and steadily many central bankers are increasing their gold reserves in order to safe guard their economy against uncertainties."