Bearish Gold Rates In India This Year-End, Expectations From Price And Demand

Gold is an auspicious metal for Indians, that is considered one of the most popular alternative investment opportunities. However, this year is ending with a bearish gold rate trend. On December 27, Indian gold rates have fallen by Rs. 70/10 grams. The 22 carat gold rates are quoted at Rs. 47,240/10 grams and 24 carat gold rates are quoted at Rs. 48,240/10 grams. On the other hand, in Chennai, Bangalore, and Delhi gold rates today gained marginally by Rs. 30-90/10 grams, while only in Kolkata, the rates fell by Rs. 60.

Gold rates in the international markets today fell marginally but were quoted above the $1800/oz level. In mid-December, the precious metal struggled to even stay around the $1780/oz range. Although inflation is one of the biggest concerns all over the world now, investors are learning to accommodate their strategies with time.

Risk sentiments are not hurting the market largely, and equity markets are seeing a boom. So, investors who were worried about inflation, even they are sticking with the equity markets, even during the tough times. This might be a reason that gold is not being able to reach its earlier level of 2020, this year. In the upcoming quarters of 2022, gold rates are not giving much hope to gain as the US Fed interest hikes will be knocking at the door. So, investors should not expect a major and consistent boom from the gold market, in the next two quarters.

However, with a controlled price rate of gold this year, demands have surged significantly, for both physical gold and virtual gold. Recently, Metals Focus, a leading independent precious metals consultancy, mentioned, "Gold and silver demand in India recovered sharply in the second half of 2021 as jewelry purchases and investment in physical metal surged following a downturn caused by Covid-19 restrictions and uncertainty" - Kitco News reported. "Many are now more confident about the prospects for jewelry demand and so are looking to increase stock levels; we estimate at least a 5-10% jump in retail stocks compared to last year," Metals Focus added.

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	47,240/-	48,240/-
Delhi	47,600/-	51,900/-
Bangalore	45,450/-	49,590/-
Hyderabad	45,450/-	49,590/-
Chennai	45,550/-	49,690/-
Kerala	45,450/-	49,590/-
Kolkata	47,400/-	50,100/-

Today the Comex gold futures fell by 0.07% and were quoted at $1809.9/oz, while the spot gold prices fell by 0.15, and were quoted at $1807.50/oz till last traded. Yesterday Comex gold futures closed at $1811.2/oz. Additionally, the US dollar index in the spot market went to 96.15, gained by 0.06%, till last traded. Mirroring the same global gold rate trend, in India, the Mumbai MCX gold in February future quoted at Rs. 48,193/10 grams, surged by 0.09%, till last traded.