Indian Gold Rates Rallies Reflecting Global Price, After US Fed Chair Testifies Before US Senate Committee

The US Fed Chairman Jerome Powell has testified on Banking, Housing and Urban Affairs, before the US Senate Committee, after the poor non-farm payroll data of December 2021 came into light. Yesterday, this impacted the gold market largely, and the February Comex gold futures gained 1.25% at some point, and last traded significantly high at around $1818/oz. As Indian gold rates are dependent on international prices, the country's gold rates also gained significantly today.

Commenting on Powell's moves, Pepperstone's head of research Chris Weston told Kitco News, "While Powell didn't really push back on market pricing around expected Fed rate hikes, we've certainly seen relief play out across markets. It feels as though he confirmed this idea that when it comes to dealing with price pressures, the Fed have afforded themselves maximum flexibility and optionality to deal with changing dynamics, yet tried to remove a belief that they are stuck on a set path."

As an impact, Indian gold prices on January 12, 2022 gained by Rs. 350/ 10 grams. The 22 carat gold prices are quoted at Rs. 46,940/10 grams and 24 carat gold rates are quoted at Rs. 48,940/10 grams. Similarly, in Chennai, Bangalore, and Hyderabad the metal gained by Rs. 100-130/ 10 grams. In Kolkata gold rates have gained by Rs. 250/10 grams. As Powell given his statement to the US Senate Committee, the gold prices went bullish, and the US Dollar index declined immediately.

However, with an optimistic tone, Weston added to Kitco News, "A decent move lower in U.S. real rates amid USD weakness is typically a green light for gold bulls, and bid up the yellow metal...We eye the $1,830 swing here...I have been wholly impressed by the yellow to ride out the recent lift in bond yields, and that may be telling a story that the gold bulls may have a better time of it in Q1."
Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow

The Comex gold futures fell by 0.16% and were quoted at $1815.5/oz, till last traded. On the earlier day, Comex gold futures closed at $1718.50/oz. The spot gold prices were quoted at $1816.30.10/oz, falling by 0.35%, till last traded. The US dollar index in the spot market stood at 95.63, gaining by 0.01%. However, in India the MCX gold in February future quoted at Rs. 47,736/10 grams, gaining marginally by 0.10%, till last traded.