Indian Gold Rates Gain By Rs. 450: Gold Is Bullish As A Safe-Haven

Gold has performed the best in the first quarter, 2022, after reaching all-time high level in Q3 2020, more than $2060/oz. The yellow metal has surged above 6% in the quarter. This increase in gold prices was driven by the Russia-Ukraine war. Worried about the volatility in the equity markets, investors started to flock toward commodities. Eventually, gold rates immediately increased sharply. In India, gold market is bullish today, on April 1. The 22 carat gold rates are quoted at Rs. 48,100/10 grams gaining by Rs. 450, and the 24 carat gold rates are quoted at Rs. 52,470/10 grams, gaining by Rs. 490/10 grams.

Reports also stated that the US yield-curve recession signals have hiked the yellow metal's investment case as 'the 2-year and the 10-year spread briefly inverted in March'. In addition to that, OANDA senior market analyst Edward Moya commented to Kitco News, "(Putin's decree) puts Europe in a tough position and raises the risks of greater pricing pressures. Gold will remain headline-driven and seems poised to make another run higher as the latest Russian move on gas contracts suggests a breakthrough in peace talks seems very far away." at present gold can find its major resistance at the $1970/oz.

Strategists at TD Securities told Kitco News, "Safe-haven flows are the name of the game for gold. So long as material progress on ceasefire talks and de-escalation remains elusive, haven flows are likely to keep the yellow metal propped up against an increasingly hawkish Fed backdrop," said strategists at TD Securities. However, coupled with Russia's invasion of Ukraine, the 40-years high inflation rate in the USA has also triggered the gold markets to stay bullish in the global markets.

Today, the Comex gold futures were quoted at $1934.30/oz, falling by 1.0%, till last traded. Yesterday it was last quoted at $1954.0/oz. The spot gold prices are quoted at $1932.0/oz, fell by 0.28%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.47, surged by 0.15%. In India, the MCX gold in June future was quoted at Rs. 51,905 grams, falling by 0.50%, till last traded.