Today, on September 18, in India 22 carat gold price is quoted at Rs. 45,390 and 24 carat gold is quoted at Rs. 46,390 per 10 grams. Today on Saturday, the prices remained the same as yesterday's prices. But on the next trading day, the prices are again expected to fall, if the previous week's trend is followed. In the international spot market gold prices hiked by a minor 0.01% today, at $1755.8/oz, whilst the US dollar index remained the same. But yesterday the US dollar index gained in the market. However, Comex gold rates fell by a 0.30% at $1751, and the MCX gold in October future fell by 0.16% as today. Overall gold business in the international markets is not showing an upward trend for the last few weeks that is concerning bullion investors, making it a good time for buyers.
An increasing US dollar index and was dragging down the gold rates in India. On the other hand, as the economy has started to recover, gold started to lose its weight. As an asset class, gold will always perform outstandingly in a time of recession or deflation and will perform only tepid in a normal economic situation. Now the global economic growth is pulling down gold prices. As India is dependent on gold import to meet domestic demands, the prices of gold in the country is again losing pace, making it a good time for buyers to invest in the yellow metal before the upcoming festive season.
In the upcoming week, on Tuesday, the US Fed will start their September meet, which will indicate the analyzing pathway about the US employment and retail inflation data. However, in the international markets, gold is not going to gain higher very soon, as the global situation is not very comfortable for the bullion market. Fed's decision about tapering will decide international gold rates, which will eventually impact Indian gold rates.
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)|
"Bears have control now. We had a complete flip in retail sales. This reinforces the idea that the Fed's hand is being forced to taper. Right now, gold is in a new trading range. The short-term trend is down", RJO Futures senior market strategist Frank Cholly commented Kitco. In addition to that, Gainesville Coins precious metals expert Everett Millman added, "Gold is comfortable between $1,700-$1,800 an ounce range. Unless we get surprising data, I don't expect the precious metal to have an outrageous swing one way or the other. The $1,740 level is supported, and resistance is at $1,770-$1,800."