Gold Prices In India Rally Again, Jump Rs 1470 In 4-Days

Gold prices in India rallied once again by Rs 100 for 22 karats per 10 grams, taking the gains to Rs 1470 in 4-days.

Gold prices in India have now hit Rs 47,850 per 10 grams for 22 karats. For 24-karats gold rates in India were Rs 52,200 per 10 grams.

The sharp gains in Indian prices of the precious metal were largely on the back of a surge in gold prices across the globe. An ounce of gold in the global markets was trading at $1702, jumping from levels of $1630 an ounce a few days ago. One of the top reasons for the gains seen in gold prices were the sharp drop in bond yields. The latter dropped after employment data was released in the US.

Gold over the last 2-3 months has seen a sharp fall on the back of monetary policy tightening across the world. Interest rates across the world from leading central banks has been on the rise and this has reduced the interest in gold. In fact, there are worries that the US Fed would hike interest rates even further, which is not good for the precious metal. Overall, we are seeing a more bullish trend that is prevailing in the precious metal now.

The relief rally in gold is unlikely to sustain, if bond prices move higher. Indian prices have largely been supported by a weak rupee. Each time the rupee gets weaker, gold becomes costlier and vice versa.