Spot gold prices in India, across the major cities fell on Monday, in line with international prices.
Spot gold for 22 karats at the retail jeweller was trading at Rs 47,510 for 22 karats in Mumbai, while in Bengaluru, gold rates were Rs 45,800 per 10 grams for 22 karats.
Here is how spot gold was trading in some of the major cities in India.
|22 karats||24 karats|
Domestic prices to take cues from international prices
Domestic gold prices in India is likely to take cues from the international markets, which have seen an upswing in prices lately. Sovereign bond yields in the US have fallen and hence we have seen gold prices shining once again. There were worries that inflation would gather steam in the United States, however many analysts feel that inflation at the moment is transitionary and hence bond yields have fallen.
At the moment gold prices are in a sweet spot, with low interest rates and abundance of liquidity in the system.
Some analysts see gold prices hitting a target of Rs 50,000 as well for 24 karats. However, much would depend on how bond yields in the US move.
In fact, a report by a leading brokerage firm has a few weeks back put the target price on the precious metal beyond the Rs 50,000 mark. It is unlikely that interest rates would move higher in a hurry, thus supporting gold prices.