Today, on September 8, Indian gold prices have fallen by Rs. 290 for both 22 carat and 24 carat gold of 10 grams. Today the 22 carat gold rate is quoted at Rs. 46120, and 24 carat gold rate is quoted at Rs. 47120 per 10 grams. Indian gold rates are dependent on global gold markets, as India imports gold from foreign markets and investors here have to pay additional import tax, cess, GST, etc. However, showing a slightly different note, on MCX gold in October future was up by 0.18% as of 5.24 PM IST today. Comex gold rate too did not perform well today and has increased only by 0.05% at $1799.4s, and international spot gold price was up only by 0.14% at $1797.80/oz as of 5.30 PM IST. US dollar index, on the other hand, was up by 0.14% at 5.30 PM IST today.
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
This is the second day in a row that gold rates have fallen marginally in the domestic market after it started to gain as US employment data did not perform well as expected. However, the Fed might be more concerned about the economic recovery, rather than inflation. Now Fed's CEO James B. Bullard is also inclined to look past the Non-farm payrolls (NFP) data's under-performance and reaffirms taper call. In an interview with ET, he said that the US is now looking out for job gains to average out around 500k per month in 2021. The country's central bank also needs optionality to raise rates in 2022 which will translate to shrinking asset purchases by the end of Q1, 2022.
On that, Edward Moya, senior market analyst of Oanda Corporation commented, "Gold prices tumbled as Treasury yields soared higher on expectations a delayed recovery would allow the Fed to tolerate higher inflation in the short-term. Wall Street is ever so slightly more concerned with inflation and with Fed tapering likely happening in December, the curve will steepen and that should prove short-term negative for gold." Commenting on the upcoming gold demands, Moya added, "Once the market can see past these next few months of pricing pressures, the reality of global disinflation forces will likely put an abrupt end to the move higher in Treasury yields, triggering a resumption of gold buying for many investors."