Gold Prices Globally Plunge To 2020 Pandemic Lows: Fed Rate Hike Fears Loom

Gold rates globally fall to 2020 pandemic low today, as investors are worried about US Federal Reserve's next financial policy measures. The Fed is expected to raise the interest rate by 75 bps this September, which might further rag down the gold rates globally. Comex gold futures fell to US$ 1,661.90/oz today (the day's low rate). The 2-year US Treasury yield jumped to 3.901%, at the highest level since 2007, which is also impacting the yellow metal and silver prices.

Indian gold rates are also reflecting the same trend today. On September 16, the 22 carat gold rates quoted at Rs. 45,800, and the 24 carat gold rates quoted at Rs. 49,960/10 grams, falling by Rs. 400-440/10 grams respectively. In the past 4 days, gold prices have fallen by Rs. 1000/10 grams in India.

Investors are mostly anxious late this week, after absorbing a hot US consumer price index inflation report for August, which came at 8.3%. Now traders are looking forward to next week's FOMC meeting, which will start on September 21. The Fed is hiking the rate to control inflation under 2%. The safe-haven quotient of gold is falling this month.

Today, the Comex gold futures were quoted at $1,671.40/oz, down by 0.35%, till last traded. Yesterday it was last traded at $1,677.30/oz. The yellow metal fell by 9.08% this year in the futures market. The spot gold prices were last quoted at $1663.80/oz, down by 0.15%, from the last trading day. The US Dollar index gained to 110.10, till last traded. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 49182/10 grams, down by 0.26%, from the last trading day.

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow: