Today, on September 22, in India 22 carat gold price is quoted at Rs. 45,360 and 24 carat gold is quoted at Rs. 46,360 per 10 grams. The prices of both 22 carat and 24 carat gold have hiked only by Rs. 30/10 grams. The international gold market is not in a good position, and in India, the same trend is being experienced, as the country imports gold for domestic needs. In the international spot market gold prices fell by a minor 0.02% today, at $1774/oz, whilst the US dollar index also dropped by 0.01% till noon. Mirroring the same trend, Comex gold rates fell by 0.09% at $1776, and the Mumbai MCX gold in October future fell by 0.01% as today till noon. The global gold market is under a dilemma regarding the USA's monetary policy which is not allowing the gold rates to increase. The US Fed is holding 2 days meeting to assess the earlier weak employment data and inflation rates. The FOMC meeting will give their statement on the economic issue and decide the taper timeline along with interest rate change. However, industry insiders are expecting the gold rates to fall again globally, impacting India similarly.
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
According to reports, "Gold saw encouraging double-digit gains as Evergrande concerns rattled the markets early this week." But now, the Fed will probably announce the tapering timeline which is expected to start in December. At the end of the FOMC meeting, the US Fed will give its assessment of the employment data, economic recovery, and monetary policy on interest rates. At present, the Fed purchases $80 billion US debt and $40 billion mortgage-backed securities every month. If the Fed cuts these purchases, this will negatively impact gold rates in the global markets.
However, the August payrolls stood at just 235,000 new jobs, only one-third of the expected number in the US. This might concern Chair Powell and he would not pull back liquidity. According to a Bloomberg report, "Powell has set out the FOMC's criteria for rates liftoff: maximum employment, and inflation that hits and is set to exceed the 2% target for some time." At the present market, bears are in control. Any more negative nod from the US Fed and interest rate hike will again drag down the gold rates.