The Indian gold market is sharply bullish this week. Today the market has seen the highest gain in more than 10 days, by Rs. 600 and Rs. 660/10 grams, for 22 carat and 24 carat gold rates respectively. The 22 carat gold rates are quoted at Rs. 47,750/10 grams, and the 24 carat gold Rs. 52,090/10 grams today, on May 24. Additionally in the past 5 days, gold has risen by around Rs. 1650 in India, which is quite profitable for the retail gold sellers.
At present, the global gold rates trend is also sharply bullish. Due to anticipations of recession, high inflation, interest rate hikes by the US Fed, an employment crunch, and a downfall in the profitability of the corporates, gold markets are gaining now. Commenting on the current gold market trend, Dr. Ravi Singh-Vice President and Head of Research-ShareIndia commented, "The weak sentiments of equity market has driven investors to much safer assets. Also, dollar has witnessed selling from two-decade highs and rising concerns over US economic growth have increased the gold demand. However, Fed's aggressive rate hikes and fiscal tightening measures will still offer major resistance to gold. The cut in the five-year loan prime rate by the People's Bank of China has supported the prices of industrial metals and crude oil, which has also boosted the prices of the precious metals last week."
International gold rates highly depend on the US dollar index. Now, as the dollar is falling gold markets are sharply up. Considering this, Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited has shared his views on gold and silver's support prices. He said, "Gold and Silver showed mixed movement on the May 23 trading session, On the Multi-Commodity Exchange (MCX), June gold contracts closed up by 0.15% at Rs 50,907 for 10 grams. While July contract Silver futures closed at Rs 61,303 a kilogram, 0.17% down. Yesterday June Gold made a high of 51156 then made a low of 50808, And Silver made a high of 62273 then made a low of 61104. As per technical chart Gold and Silver are making bottom, we can see a huge short covering rally in coming future, momentum indicator RSI also indicating the same in hourly as well as daily chart."
Today, the Comex gold futures were quoted at $1855.50/oz, gaining by 0.41%, from the last trading day. Yesterday it was last quoted at $1847.80/oz. Similarly, the spot gold prices were last quoted at $1856.70/oz, gaining by 0.12%, from the last trading day. The US dollar index in the spot market stood at 101.81, falling by 0.32. In India, the MCX gold in June future was quoted at Rs. 51,047/10 grams, gaining by 0.28%, from the last trading day.