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US Inflation At 40 Years High Level, What Will Be The Upcoming Gold Rates Direction?

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Recently published data regarding US inflation and retail sales have been concerning investors and economists all over the world. The inflation in the country stood at 7% YoY, at the 40 years (since 1982) high level in December. On the other hand, retail sales slowed down highest in the past 10 months, dropping 1.9%. Hence, the gold traders can expect a marginal boost in gold rates, as the precious metal is a hedge against inflation. The US dollar and the US bond yields will influence the gold rates in the upcoming days significantly.

 
US Inflation At 40 Years High Level, What Will Be The Upcoming Gold Rates Direct

The US Fed on the other hand has mentioned multiple times that they can hike the interest rates 3 times this year. If that takes place, the gold rates again will be subdued. Commenting on these factors, OANDA senior market analyst Edward Moya told Kitco News, "Take a look at how high Treasury yields have run. The market is pricing in well over 90% chance that the Fed will raise rates in March. And gold is having its best week in a couple of months...Gold is not able to break beyond its recent highs, but things are looking pretty good."

Additionally, the equity markets will also be an influence on the global gold markets. Gold is now struggling to stay above the $1820/oz level, and in the last December the situation has been worse. RJO Futures Senior commodities broker Bob Haberkorn recently gave Kitco a price range for the metal. According to Haberkorn on gold rates, "Depending on how yields look, we could get to anywhere between $1,830 and $1,850. If bond yields weren't doing what they are doing, gold would be $50-$70 higher."

Indian gold rates have gained by Rs. 100/ 10 grams, on January 15, 2022. The 22 carat gold prices are quoted at Rs. 47,080/10 grams and 24 carat gold rates are quoted at Rs. 49,080/10 grams. In Chennai and Kolkata gold prices today have fallen by Rs. 80-100/10 grams. This is a marginal fall for the gold rates. Investors are now waiting for the US Fed's steps to control inflation.

 

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

City22 carat (INR/10 Grams)24 carat (INR/10 Grams)
Mumbai47,080/-49,080/-
Delhi47,150/-51,440/-
Bangalore45,000/-49,100/-
Hyderabad45,000/-49,100/-
Chennai45,370/-49,450/-
Kerala45,000/-49,100/-
Kolkata47,300/-50,000/-

The Comex gold futures fell by 0.27% and were quoted at $1816.5/oz, till last traded. On the earlier day, Comex gold futures closed at $1821.4/oz. The spot gold prices were quoted at $1819.10/oz, dropping by 0.23%, till last traded. The US dollar index in the spot market stood at 95.17. However, in India, the MCX gold in February future quoted at Rs. 47,820/10 grams, gaining marginally by 0.18%, till last traded.

Read more about: gold rates inflation
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