Internationally, gold, like other precious metals is bearish now. Major countries got a grip on the Covid-19 pandemic, and gold rates started to fall. As the Russia-Ukraine war has eased much and the pandemic is not at its peak, gold is losing its significance as a safe haven. China is the biggest consumer of gold, however, its gold reserves have remained static recently. In line with the international trends, Indian gold rates are also under pressure now, which is expected to give retail sales a boost. At present, the Indian stock markets are significantly down due to major reasons like interest rate hikes and FPI outflows. So, now investors can think about buying gold ornaments or investing in Gold ETFs, gold funds for good returns in long term. With an Rs. 100/10 grams gain in India, the 22 carat gold rate is quoted at Rs. 47500, and 24 carat gold rate is quoted at Rs. 51,810 in the Indian markets.
Historically, the high inflation rate plays a bearish tone for paper assets like stocks and bonds, while it plays a bullish tone for hard assets like commodities. In the present situation, precious metals like gold and silver traders are trying to focus on the bearish aspects. The mounting US bond yield is a significant reason behind it. However, some analysts are expecting that 'at some point in the not-too-distant future the focus can 'change to the bullish aspects of rapidly rising inflation. The US inflation is at a 40 years high range now, and gold is a hedge against inflation.
Commenting about upcoming old rates, Analyst Jim Wyckoff told Kitco News, "Technically, the June gold futures bears have the overall near-term technical advantage. A two-month-old downtrend line is in place on the daily bar chart. Bulls' next upside price objective is to produce a close in June futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,875.00 and then at the overnight high of $1,885.60."
Today, the Comex gold futures were quoted at $1865.0/oz, falling by 0.94%, till last traded. Yesterday it was last quoted at $1882.80/oz. The spot gold prices are quoted at $1870.10/oz, falling by 0.75%, till last traded. On the other hand, the US dollar index in the spot market stood at 103.63, falling by 0.14%. In India, the MCX gold in June future was quoted at Rs. 51,236 grams, falling by 0.21%, till last traded.