Gold Rates Drop Below 1,674/oz Globally, Falls 2%, Indian Gold Rates Reflect Trend

Indian gold rates are on the verge of falling today. On September 15, the 22 carat gold rates quoted at Rs. 46,200, and the 24 carat gold rates quoted at Rs. 50,400/10 grams, falling by Rs. 200-220/10 grams respectively. In the past 2 days, 24 carat god prices have fallen by Rs. 520 in India. After the US Labor Department announced that the US CPI Inflation fell to 8.3% YoY in August, gold and silver rates dropped globally. In July, US inflation was reported to be at 8.5%. Today globally gold rates also drop below US$ 1,674.90/oz, before the US Fed FOMC meeting next week. The Fed is expected to raise the interest rate by 75 bps from that meeting, to control inflation.

"The marketplace was a bit calmer overnight and early this morning, but it appears recent hawkish monetary policy comments from central bank officials and noted market analysts have combined with hot inflation readings to quickly sap what little risk appetite had been seen earlier today. And remember, the stock and financial markets are at the time of year (September and October) where the going can get very tough. Gold and silver bulls remain frustrated that the risk aversion in the marketplace is not translating into more safe-haven demand for the two metals," commenting on the yellow metal markets, Analysts Jim Wyckoff told Kitco News.

Today, the Comex gold futures were quoted at $1,674.90/oz, down by 2.00%, till last traded. Yesterday it was last traded at $1,709.10/oz. The yellow metal fell by 9.02% this year in the futures market. The US Dollar index is quoted at 109.66, till last traded. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 49298/10 grams, down by 1.44%, from the last trading day.

Analysts Jim Wyckoff added to Kitco News, "October gold futures prices hit a nearly 2.5-year low today. The gold futures bears have the solid overall near-term technical advantage and gained more power today. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at $1,675.00 and then at $1,686.30. First support is seen at $1,650.00 and then at $1,635.00."

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