Gold Rates Fell Around Rs. 1500 In 1 Week, Amid US Inflation Up 9.1% In June

Indian gold rates fell around Rs. 1500 in the past week, with a sharp rise in the US Dollar index to around 108.40. The US currency is reaching fresh 52-week highs every day. Today, the 22-carat gold rate is quoted at around Rs. 46,700/10 grams, and 24-carat gold rate is quoted at around Rs. 50,950/10 grams. On July 13, gold rates fell by around Rs. 100. The economic situation in the US is quite hot as the CPI inflation data in June increased 9.1% YoY, again standing at 40-years high. In the last month, CPI was up by 8.6%.

Watching hot inflation data, investors might think that with rising inflation gold rates should surge sharply. However, the table has been turned. Analysts are realizing that a sharp CPI rise means the US federal reserve will be even tougher and will implement a tight monetary policy. The interest rate will be hiked again. This means the government bond yields will be more profitable. So, investors will be more comfortable taking shelter under the bonds, rather than gold. As a hedge against inflation, gold rates gained sharply in the past two years. But, since the interest rates are being hiked, gold rates are on the verge of falling. In 2022, the yellow metal has fallen significantly by 6.58% in the Comex futures. So, for Indians, it is a good time to buy gold.

Today, the Comex gold futures were quoted at $1,715.90/oz, falling by 0.51%, from the last trading day. Yesterday it was last quoted at $1,724.80/oz. The spot gold prices were last quoted at $1729.20/oz, gaining by 0.07%, from the last trading day. The US Dollar index quoted at 108.28, surging by 1.06%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 50519/10 grams, gaining by 0.12%, from the last trading day.

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