Indian Gold Rates Rallied Marginally On Oct 25, As Inflation Concerns Intensified

Indian gold prices rallied Rs. 100/10 grams today, on October 25, as the inflation concern is worrying investors worldwide. Today, 22 carat gold rates are quoted at Rs. 46,760/10 grams and 24 carat gold rates are quoted at Rs. 47,760/10 grams. Indian gold rates are dependent on international gold prices, and in line with the international rate hike, Indian gold rates gained today. Gold rates in Bangalore, Kerala, and Delhi have hiked by Rs. 90/10 grams, whilst in Kolkata gold rates have gained by Rs. 390/10 grams.

The Comex gold futures today gained by 0.29%, quoted at $1801, while the spot gold prices also hiked by 0.68%, quoted at $1805.00/oz till 2.31 PM IST today. At the same time, the US dollar index in the spot market stood at 93.58, dropping by 0.09. Reflecting the same trend, in India, the Mumbai MCX gold in October future gained by 0.55%, quoted at Rs. 48,060/10 grams, till 2.28 PM IST. The global gold rates started to rally and consistently stayed over the $1800 level, as US Fed's Powell has recently commented on the inflation worries.

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)
Mumbai	46,760/-	47,760/-
Delhi	47,000/-	51,250/-
Bangalore	44,850/-	48,930/-
Hyderabad	44,850/-	48,930/-
Chennai	45,180/-	49,280/-
Kerala	44,850/-	48,930/-
Kolkata	47,400/-	50,100/-

(Also read: RBI's Sovereign Gold Bond (SGB) Scheme Opens On Oct 25, Should You Invest In The Commodity?)

Inflation is keeping the US Dollar index in a soft position, and gold prices up. At the end of last week, US Fed Chairman Jerome Powell has strongly commented about inflation. He thinks that it is time for tapering, the US is now ready for it. But the interest rate is not going to be increased soon. With tapering, gold rates might fall globally, but inflation is certainly a big concern now. Investors and analysts earlier thought the US inflation is transitory, but at present, it is being identified as 'stagflation'. That means inflation is at a stagnant position now. It is known that gold is a popular hedge against inflation, hence with increased demands, gold prices are once again gaining.

(Also read: What Is RBI Sovereign Gold Bond (SGB) Scheme? Benefits And Upcoming Tranches, 2021-2022)