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Indian Gold Rates Fell By Rs. 100, On Nov 3, Before US FOMC Address


Indian gold rates have gained marginally today on November 3, before the US Federal Reserve's FOMC meeting conclusion mirroring the international trend. Gold prices dropped by Rs. 100 / 10 grams today. So, 22 carat gold rates are quoted at Rs. 46,750/10 grams and 24 carat gold rates are quoted at Rs. 47,750/10 grams. Significantly, major Indian cities like Delhi, Bangalore, Madurai, and Chennai have seen a drop of around Rs. 250 in gold rates today. So, before Diwali, this fall will attract common buyers to consume more gold.

Indian Gold Rates Fell By Rs. 100, On Nov 3, Before US FOMC Address

The Comex gold December futures today fell only by 0.35% and was quoted at $1783.2, while the spot gold prices also fell only by 0.25%, and were quoted at $1784.2/oz till 4.34 PM IST. On the other hand, the US dollar index in the spot market stood at 94.03, falling by 0.09%. Mirroring the same global gold rate trend, in India, the Mumbai MCX gold in October future also dropped by 0.49%, and was quoted at Rs. 47,390/10 grams, till 4.29 PM IST. On November 3, US Fed will announce the tapering timeline officially. Anticipating this, gold rates in the international markets fell today. Since yesterday this trend was visible, and Comex gold futures closed with a quotation of $1789.4/oz. Indian gold rates are dependent on global prices, so mirroring the same trend, the gold rates dropped in the domestic markets.

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

City22 carat (INR/10 Grams)24 carat (INR/10 Grams)

(Also read: Gold Prices Are Rising Now, But Having Mixed Bag Of Expectations)

Tapering indicates a slow down in asset purchases or reducing the volume of bond-buying by a central bank, in an economy. The bond-buying program is called quantitative easing (QE) which is given in an economy to infuse more liquidity when needed. On the other hand, tapering of bond-buying essentially comes after the QE program. The US Fed thinks that this is the time when the US is recovering from the effects of the pandemic and they have decided to start tapering slowly.


So, the government bond yield is going to be more profitable and the US Dollar index is expected to increase. As gold is a dollar-dominated asset class, the gold rates will eventually drop to some extend. In India before Diwali, the gold prices are anticipated to ease.

Story first published: Wednesday, November 3, 2021, 16:51 [IST]
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