In India gold rates on Sept 23, have dropped marginally, as the US Fed Chairman Jerome Powell sounded optimistic at the end of the Federal Open Market Committee (FOMC) meeting about the USA's economic recovery. 22 carat gold price is quoted at Rs. 45,300 and 24 carat gold is quoted at Rs. 46,300 per 10 grams. Both 22 carat and 24 carat gold have fallen by Rs. 60/10 grams. The international gold market is not going through a good time, reflecting the same trend in India. Today the Comex gold future dropped by 0.40% at $1771, while the spot gold market gained by only 0.12% at $1771/oz, at 4.25 EDT. US dollar index, on the other hand, fell by 0.29% today. The Mumbai MCX gold in October future also fell by 0.65% at Rs. 46,370/10 grams today till noon.
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)|
Today US Fed Chair Jerome Powell commented to the press that they might start tapering but the timeline will be mentioned in the net meeting. The next FOMC meetings will be organized in November and then the timeline will be published. He said a very gradual taper can start that will conclude in the middle of next year, in 2022. Regarding the employment data, Powell sounded optimistic again as he said, "For me, it wouldn't take a knock-out (August) employment report. It would take a reasonably good employment report for me to feel like that test is met. I don't personally need to see a very strong employment report. Again it's not to be confused with the test for (rate) liftoff, which is so much higher."
The central bank also stated that they are keeping the interest rate the same now, at near zero. But this can increase to 1.8% in 2024. The impacts of the Covid pandemic on the economy are expected to mitigate by then. It proves that the Fed is not very certain about the interest rate hike very soon. But they are thinking seriously about tapering, which will negatively impact gold rates. Hence, after 2 months, gold rates can fall again globally and in the Indian cities. It will be a good time for buyers to invest then.