With A Bearish Gold Market In India, Demands Can Increase Further

Gold rates are bearish in India today after the US Fed's monetary policy meeting concluded with a decision that the US interest rate might be hiked 'soon'. With this rate hike, government bonds will be much more profitable rather than equities and assets. Hence, gold rates are being dragged down at the present moment. This falling gold rate can increase the gold demands further. Along with massive growth in physical gold demands in the last quarter, digital gold's demand is also expected to boom.

Earlier, this month, gold rates jumped sharply in January. Inflation stood as the most important reason behind this gain. From January 6, gold rates in the international markets were on the verge of gaining. Similarly, in India, on January 24, the last traded price of gold stood at Rs. 47,650/10 grams, for 22 carat gold. But, today on January 29, the gold rates fell to Rs. 45,000. Investors are hoping that the US rate hike can control the high inflation rate.

Gold is a hedge against inflation. Recently, the upcoming US monetary policy is expected to control inflation. So, the gold rates in the global markets. Commenting about the gold and bitcoin markets further, Anthony Scaramucci, founder of SkyBridge Capital and former White House Communications Director told Kitco News, "I believe that when Bitcoin is mature, it will be more valuable than gold because of all the technical properties associated with it. 10 years from now, I'll make a prediction, that Bitcoin has a larger market capitalization than gold. It took gold 5,000 years to get to its current market capitalization. Bitcoin will surpass that in under 25 years from its inception."

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

City	22 carat (INR/10 Grams)	24 carat (INR/10 Grams)
Mumbai	45,000/-	49,000/-
Delhi	45,000/-	49,100/-
Bangalore	45,000/-	49,100/-
Hyderabad	45,000/-	49,100/-
Chennai	45,490/-	49,450/-
Kerala	45,000/-	49,100/-
Kolkata	45,000/-	49,100/-

The Comex gold futures fell by 0.46% and were quoted at $1784.90/oz, till last traded. On the earlier day, Comex gold futures closed at $1793.10/oz. The spot gold prices were quoted at $1792.70/oz, fell by 0.30%, till last traded. The US dollar index in the spot market stood at 97.23. However, in India, the MCX gold in February future quoted at Rs. 47,610/10 grams, fell by 0.78%, till last traded.