Indian gold rates today surged significantly on strong global cues. Today, on November 9, in India the 22-carat gold rate gained to Rs. 47,360, and the 24-carat gold rate gained to Rs. 51,670/10 grams, up by Rs. 560-620 today. Additionally, the silver rate quoted at Rs. 6170/100 grams today, up by Rs. 85.
Internationally, gold price breached to US$ 1,719/oz, after the US ended its midterm elections today. After the election, the US dollar index tumbled significantly to 109.45, fearing volatility. This has been the major driver of rising gold rates on Tuesday.
The Comex gold futures were quoted at $1,710.10/oz, down by 0.34%, till last traded. Additionally, in the Mumbai Commodity Exchange (MCX) gold in December future is quoted at Rs. 51485/10 grams, down by 0.28%, from the last trading day. Meanwhile, the US 2-year Treasury bond yield quoted at around 4.67%, and the US 10-year Treasury yield gained to around 4.145%.
"Gold looks like it will closely track the dollar, and that means it will hinge on this week's inflation report...The reason investors are so fixated with this week's inflation data instead of the midterm election is that it seems highly likely the Republicans will win one of the chambers this week. Even if the Republicans win both the House and Senate, the bullish reaction for risky assets might be short-lived," OANDA senior market analyst Edward Moya told Kitco News. Inflation data and the US Fed's next monetary policy will be moving the gold rates further.