Gold prices in India are rallying once again. On 17th August, 22 carat gold prices stood at Rs. 46430 and 24 carat gold stood at Rs. 47430 per 10 grams. Major cities like Bangalore, Mumbai, Kolkata, and Delhi have followed the aforesaid trend and saw a price hike. However, on 16th August prices went down to Rs. 180 per 10 grams for both 22 and 24 carat gold in India.
How did gold perform in the last week?
Gold prices in India from 6th August to 11th August were going through depression - as the US jobs data came out positively and investors assumed an interest rate hike by the US Fed. However, the market is at ease now as the prices are on the path to recovery. Since 12th August the prices have been going up.
From 12th August, 10 grams gold prices in the country have been rising each day at - Rs. 260 on 12th August, Rs. 320 on 13th August and Rs. 450 14th August unceasingly. Last Saturday, on 14th August in India the price of 22 carat gold per 10 gram was Rs. 46310 and 24 carat gold per gram was Rs. 47310.
Additionally, in the MCX FUTCOM, gold rates were last traded at Rs. 46930 per 10 grams on 13th August 11.29 PM. It was a 1.2% hike than the earlier day. The absolute price change was Rs. 567 per 10 grams. Since then, the prices have jumped 0.63% on MCX today (17th August, 3.47 PM IST). It saw a Rs. 296 absolute price hike since yesterday's price drop. Hence, even if the prices fell significantly in the last week after US jobs data release, the rates are going upwards again. Certainly, this is going to be a prospectus field for the investors.
This is naturally reflected in the domestic gold rates in India - as Indian gold rates completely depend on the international gold rates. No up-scaling interest rate in the US helped the gold prices in the international market to rise. So Indian gold prices are seeing upward trend now. As there is no certain indication from the US Fed would hike interest rate hike, investors should buy gold now for better profits in near future.
However, if interest rates are hiked by the US Federal Reserve or the central bank resorts to tapering, we might see gold prices fall.