Indian Gold Rates Surged By Rs. 650: US GDP Falls 0.9%, Interest Rate 75bps Hiked As Expected

International gold rates are booming after the US Fed hiked its interest rate by 75 bps, as expected by analysts. If the US Fed would have hiked the rate by 100 bps, then the gold market, crypto market, and US stock market would have fallen. But, an in-line interest rate hike has helped the gold market to surge. The 22-carat gold rate is quoted at around Rs. 47,100/10 grams, and the 24-carat gold rate is quoted at around Rs. 51,380/10 grams, gaining by around Rs. 650-700/ 10 grams, today.

Additionally, the Commerce Department stated that US Gross Domestic Product dropped 0.9% in Q2, missing the market estimate of a 0.4% increase. "The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and non-residential fixed investment that were partly offset by increases in exports and personal consumption expenditures," the report mentioned. So, the gold market got another push to gain.

Today, the Comex gold futures were quoted at $1,749.50/oz, falling by 1.76%, from the last trading day. Yesterday it was last quoted at $1,719.10/oz. The yellow metal fell by 4.75% this year in the futures market. The spot gold prices were last quoted at $1753.40/oz, falling by 1.01%, from the last trading day. The US Dollar index quoted at 106.48, gaining by 0.11%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 51466/10 grams, surging by 1.33%, from the last trading day.