The US Federal Open Market Committee meeting will take place this week, and the upcoming global gold rates will largely depend on that. The Fed officials will decide about their monetary policy and interest rate hike. The 40-years high inflation rate is the major challenge for the country now. Analysts at Goldman Sachs think that the Fed can initiate 4 times interest rate hikes throughout this year. However, it is still under doubt how far the inflation rate can be controlled. The gold rates will perform accordingly.
Falling gold rates are profitable for investors now. Since this January, the metal mostly stayed surged, unlike the last December. Throughout the festive season, gold rates surged. Now a fall in gold rate can increase gold demands. As a hedge against inflation, gold has never lost its importance, this month has proved it. Demands of both digital and physical gold have increased.
Additionally, the importance of the precious metal has been noticed significantly, mostly in the digital form in recent times. According to SPDR Gold Shares (NYSE: GLD), they have seen the largest gold-backed ETF inflow in 2021, in US dollar terms since its listing in 2004. It has translated to more than $1.6 billion. So, the investors have kept faith in gold, despite the fluctuations in gold prices, globally.
Gold prices, on January 25, 2022, have fallen sharply since last October. The metal fell by Rs. 1900/10 grams in India today. The 22 carat gold prices are quoted at Rs. 45,750/10 grams and 24 carat gold rates are quoted at Rs. 49,680/10 grams. In Mumbai and Delhi also gold rates fell by Rs. 1900 today, which is quite profitable for investors to invest in the metal now. However, they can also wait for the upcoming US FOMC meeting this week, for further price anticipation.
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)|
The Comex gold futures gained by 0.19% and were quoted at $1838.20/oz, till last traded. On the earlier day, Comex gold futures closed at $1841.7/oz. The spot gold prices were quoted at $1838.70/oz, surged by 0.30%, till last traded. The US dollar index in the spot market stood at 96.11, gaining by 0.22. However, in India, the MCX gold in February future quoted at Rs. 48,580/10 grams, gains by 0.06%, till last traded.