Indian Gold Rates Jump Rs. 350 Today, But Globally Gold Can Fall Further In 2022: Analyst

The Indian gold market is bullish today, following the international trend. The 22-carat gold rate today stood at Rs. 47,500/10 grams, and 24-carat gold rate stood at around Rs. 51,820/10 grams, gaining by around Rs. 350-380/10 grams today. After the US Federal Reserve hiked its interest rate by 75 bps, as expected by the analysts, the gold market did not show a bearish trend. Rather, the yellow metal has revived marginally, than July's market trend. However, some analysts think that gold rates can fall further in the global markets, which will impact Indian gold markets similarly.

Gold rates can fall further in 2022: analyst

According to the latest forecast from Capital Economics, the yellow metal can fall to $1,650/oz by the end of 2022. "Having fallen sharply in Q2, we think that the gold price is now close to a cyclical trough. What's more, the price should revive a little in 2023 as markets factor in the prospect of U.S. monetary tightening," commented Capital Economics Chief Commodities Economist Caroline Bain.

Kitco News reported, "The price of gold has dropped by 11% since its recent peak in March. Much of the fall can be placed firmly at the feet of dollar appreciation. After all, the price of gold in other major currencies has held up much better. Rising US real Treasury yields also played a part. Slower economic growth and a slump in non-energy commodities prices point to less monetary tightening in the US than investors had been anticipating. In recent weeks, 10-year yields have fallen, US equities have picked up, and the dollar has eased back," as Bain added. The US Bond yield is one of the major drivers of gold rates along with the US Dollar index and inflation rate.

International market trend

Today, the Comex gold futures were quoted at $1,790.70/oz, gaining by 0.79%, from the last trading day. Yesterday it was last quoted at $1,776.40/oz. The yellow metal fell by 2.81% this year in the futures market. The spot gold prices were last quoted at $1774.20/oz, gaining by 0.43%, from the last trading day. The US Dollar index was quoted at 106.35, falling only by 0.12%. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 52038/10 grams, gaining by 1.26%, from the last trading day.