Spot Gold Rates Are Bearish In India, On December 21: What Is The Trend?

Indian gold rates are mostly reacting marginally bearish in December, even if the international spot prices gain. This suppressed price is helping the gold demand to surge in the country, during the wedding season. Falling by Rs. 230/10 grams, on December 21, the 22 carat gold rates are quoted at Rs. 47,410/10 grams and 24 carat gold rates are quoted at Rs. 48,410/10 grams in India. Gold rates in Chennai, Hyderabad, and Bangalore have fallen significantly by Rs. 370-400/ 10 grams, while in Kolkata the precious metal has fallen by Rs. 500.

Gold rates in the international markets and in the Indian domestic markets, are failing to gain subsequently as in November, due to the Fed's declaration about the interest rate hike. The US Federal Reserve's Chairman Jerome Powell has commented that the government will hike the interest rate from March, next year, to control the roaring inflation rate. As a hedge against inflation, gold rates have earlier gained in November, but the worries faded in the current month.

However, inflation is anticipated to rise in the USA in the upcoming months, due to multiple reasons like oil price hikes, supply chain bottlenecks, etc. Gold rates are likely to increase if inflation rises. Considering that, if the US Fed fails to restrict the inflation rate, gold rates can hike. But with the proposed interest rate hike next year, the gold rates will further fall globally.

India is a country that does not produce enough gold for domestic consumptions. Hence, India mostly depends on imported gold. That means, Indian gold rates solely depend on international gold prices. With the rise and fall of gold rates in the global markets, Indian gold prices react accordingly. With a bearish gold market in December, India's common consumers are getting a scope to make a profit, in this wedding season. The November-December period in the country is very significant for the gold traders and gold jewelers, regarding the demand issue. A falling gold rate is now helping the gold demand to boost.

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:

Today the Comex gold futures fell only by 0.22% and were quoted at $1789.7/oz, while the spot gold prices surged marginally by 0.25%, and were quoted at $1797.4/oz till last traded. Yesterday Comex gold futures closed at $1793.7/oz. Additionally, the US dollar index in the spot market went to 96.37, dropped by a tad at 0.15%, till last traded. Mirroring the same global gold rate trend, in India, the Mumbai MCX gold in February future quoted at Rs. 48,151/10 grams, fell by 0.18%, till last traded.