With Bullish Gold Market In India, Gold ETFs Are Preferred Choice

Gold rates in Indian markets are bullish today. Coupled with Russia-Ukraine uncertainties, the high inflation rate is influencing the gold rates at present. The Biden administration is discussing that they might send a high-level official to Kyiv regarding the Russia-Ukraine matter. For gold, it is the perfect time to show its potential as a safe haven. Investors are being recommended to invest in gold ETFs to get higher profits in long term. SBI gold ETF is priced at Rs. 46.81/unit and Axis gold ETF is priced at 46.10/unit today.

Today, on April 14, 22 carat gold rates are quoted at Rs. 49550 and 24 carat gold rates quoted at Rs. 54060/10 grams. Gold rates surged by around Rs. 200 today.

Gold prices are reacting quite positively over the last three days as a result of hotter-than-expected inflation data in the USA, it gained 8.5% YoY. However, MKS PAMP Group commented that gold's 'big test' is yet to come. Gold prices yesterday crossed $1984/oz level, however, it is marginally low today, in the Comex. In addition to that, the US Producer Price Index (PPI) surged 11.2% yearly in March, posting another new record.

With inflationary pressures, volatility in the gold markets is increasing. According to Nicky Shiels, MKS PAMP Group metals strategist, "If this really is 'peak inflation' coupled with impending back-to-back 50bp Fed hikes, gold should be trading very defensively... it is not. Prices are up $30 since the CPI print as it harnesses the oversimplified view that 'high inflation prints = higher gold' program instead of the 'high inflation = hawkish Fed = lower gold' one."

The Comex gold futures were quoted at $1981.60/oz, falling by 0.16%, till last traded. Yesterday it was last quoted at $1984.70/oz. The spot gold prices are quoted at $1975.90/oz, falling by 0.13%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.85, gaining by 0.06%. In India, the MCX gold in June future was quoted at Rs. 52,098 grams, falling by 0.15%, till last traded.