Indian Gold Rates Are Down By Rs. 400: Check Rates

Indian gold rates on May 10, fell by Rs. 400/10 grams. The 22 carat gold rate is quoted at Rs. 47100, and 24 carat gold rate is quoted at Rs. 51,380 in the Indian markets. Following the global trend, IBJA in India decides the domestic gold rates. Due to Russia-Ukraine geopolitical tensions, the pandemic, interest rates, and inflation, gold markets have been very volatile in the recent past. So, now analysts are having mixed opinions about the upcoming gold market trend.

According to MKS PAMP, there are two options for gold. Either the metal can drop to $1,300/oz or surge to $4,000/oz. The prices will depend on how fast or slow the US Fed tightens the monetary policy. Any further hike in interest rate by the central bank will help the government bond yield to surge further, and eventually, investors' minds will be moved away from gold.

MKS PAMP metals strategist Nicky Shiels commented to Kitco news, "A slow Fed hiking cycle is very bullish gold (especially after 1year). Gold hardly falls below levels once the Fed starts on a slow hiking path (the max average drawdown is -2%). On average, 5years on is up 115%, which in today's terms is equivalent to gold over $4,000 in 2027. Slow hiking cycle is one with incremental 25bp hikes, smaller total no. of hikes within the 1st year and/or relatively lower terminal funds rate."

Today, the Comex gold futures were quoted at $1861.0/oz, gaining by 0.10%, till last traded. Yesterday it was last quoted at $1858.60/oz. The spot gold prices are quoted at $1861.40/oz, gaining by 0.34%, till last traded. On the other hand, the US dollar index in the spot market stood at 103.67, falling by only 0.03%. In India, the MCX gold in June future was quoted at Rs. 51,000 grams, gaining by 0.08%, till last traded.