Indian Gold Rates Are Surging Significantly In Mid-February: Should You Buy?

Indian gold rates are gaining in Mid-February, this year. Today, on February 10, the 22 carat gold prices are quoted at Rs. 45,800/10 grams, gaining by Rs. 250/10 grams. On the other hand, the 24 carat gold rates are quoted at Rs. 49,970/10 grams, gaining by Rs. 224/10 grams. In cities like Hyderabad, Bangalore, and Chennai, gold rates surged by Rs. 230-250/10 grams. Indian gold rates are fixed by IBJA, which is influenced by daily global gold prices.

Commenting on the upcoming trend in the international gold markets, Chris Weston, Pepperstone head of research told Kitco News, "Gold wants to have another sniff at downtrend resistance at $1,847, a level that seems so important for the gold market. I will refrain from saying either market have been bought as an inflation hedge as there is simply little correlation between crypto/gold and expected inflation - I certainly see gold as a better portfolio hedge against a central bank pivoting in their stance and a potential walk back of rate hike expectations." Due to many factors like inflation and interest rate hike anticipation in the US, gold prices are quite volatile at present. However, Weston added, "Gold and silver are finding buyers despite higher US real rates and a modestly stronger USD."

The Comex gold futures fell only by 0.05% and were quoted at $1834.30/oz, till last traded. On the earlier day, Comex gold futures closed at $1835.20/oz. The spot gold prices were quoted at $1835.70/oz, gained by 0.08%, till last traded. The US dollar index in the spot market stood at 95.57, fell by 0.01%. However, in India, the MCX gold in April future quoted at Rs. 48,741/10 grams, gained by 0.17%, till last traded. The US Fed is expected to hike the interest rate in March, this year. At that time, the gold rates can fall further. So, as an investor you can wait for that time, because now, the rates are bit elevated. However, the rate hike in the US is yet an anticipation. Lower price range of gold increases the gold demand in India. As a long term investment the metal has earned much attention during this pandemic.

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:

City	22 carat (INR/10 Grams)	24 carat (INR/10 Grams)
Mumbai	45,800/-	49,970/-
Delhi	45,800/-	49,970/-
Bangalore	45,800/-	49,970/-
Hyderabad	45,800/-	49,970/-
Chennai	46,010/-	50,200/-
Kerala	45,800/-	49,970/-
Kolkata	45,800/-	49,970/-