Gold Rates Rallying Sharply, Inflation Graph Impacted: Profitable For Gold Producers

The inflation rates are no more transitory, as expected earlier in the global picture. All major economies like China, the USA, the UK, and Germany are now struggling with the same challenge. The US is dealing with a 40-years high inflation rate, while the UK is dealing with a 30-years high rate. So, the gold market is booming now.

Additionally, the gold price is however profitable for the producers at the present moment, because they have possibly booked their reserves at much lower prices. The operating cost of productions might have gained marginally. A higher gold price in the current time will fetch producers good returns.

Indian gold rates in late January are on the bull run now, since the past one week, gold rates have been gaining marginally in the domestic markets. Today, on January 20, 2022, the yellow metal has surged by Rs. 430/ 10 grams in the Indian markets. The 22-carat gold prices are quoted at Rs. 47,590/10 grams and 24-carat gold rates are quoted at Rs. 49,590/10 grams. In line with the same trend, in Chennai gold rates gained by Rs. 380, while in Hyderabad, Bangalore and Kerala, gold rates have gained by Rs. 500/10 grams today.

A falling US dollar has been another major reason behind the gain of gold rates in India and the global markets. For the last three days, the US dollar index was falling in the international markets, because from economic development, employment situation, manufacturing to inflation rates, everything was unfavorable for the country's growth. As a US dollar-dominated asset class, gold is on the verge of gaining now.

A surging gold rate might impact the gold jewellery demands in India. However, the demand for gold ETFs and digital gold can rise further. By choosing digital gold, investors can save the making charges of gold jewellery or gold coin. But gold will remain in demand, as a hedge against inflation.

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

The Comex gold futures fell marginally by 0.10% and were quoted at $1841.3/oz, till last traded. On the earlier day, Comex gold futures closed at $1843.2/oz. The spot gold prices were quoted at $1841.20/oz, fell by 0.01%, till last traded. The US dollar index in the spot market stood at 95.52, falling by 0.11%. Similarly, in India, the MCX gold in February future quoted at Rs. 48,391/10 grams, surged by 0.03%, till last traded.