Indian Gold Rates Remain Flat, Bullish Trend In Global Markets

In India, gold rates remained flat on April 11. The 22 carat gold rates are quoted at Rs. 48,600/10 grams, and the 24 carat gold rates are quoted at Rs. 53,020/10 grams. In Chennai, 22 carat gold rate is quoted at Rs. 49,460/10 grams, and in Hyderabad, Bangalore, Kolkata, and Kerala 22 carat gold rate is quoted at Rs. 48,600/10 grams.

Now, gold investors are paying sheer attention to the US inflation data, which will be published soon. Many analysts are anticipating that the inflation rate can be above 8%. If the data shows an upward trend, the gold market will again rise sharply. Importantly, the FOMC March meeting has mentioned that Fed can cut the balance sheet by $95 billion a month, which can be implemented in May, and the gold rates reacted accordingly. Additionally, the US Fed can hike the interest rate by 50bps at the next meetings. According to the FOMC meeting minutes, "Many participants noted that one or more 50 basis point increases in the target range could be appropriate at future meetings, particularly if inflation pressures remained elevated or intensified." With a rate hike, the gold market can drop, and investors are looking forward.

Commenting about the upcoming gold market trend, OANDA senior market analyst Edward Moya told Kitco News, "The market is now focused on whether the Fed's accelerated tightening path will eventually force the central bank to choose between continuing to fight inflation aggressively or slowing down because of growth concerns. That is providing long-term optimism for gold investors."

About the Russia-Ukraine war and its impact on the yellow metal, Moya added, "As this war in Ukraine drags on, it will continue to feed into this inflationary focus the markets have. There are a lot of reasons to flee into safe havens right now."

The Comex gold futures were quoted at $1968.30/oz, gaining by 1.16%, till last traded. Yesterday it was last quoted at $1945.60/oz. The spot gold prices are quoted at $1967.00/oz, gaining by 0.99%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.92, surging by 0.10%. In India, the MCX gold in June future was quoted at Rs. 52,634 grams, gaining only by 1.08%, till last traded.