Gold Rates See Recovery On June 16 After Hitting 2-month Lows

Gold prices in India saw some recovery after hitting a 2-month low in India and 3-month low globally. On Friday, gold for 22k was trading at Rs 55100 in Mumbai, a gain of around Rs 370 per 10 grams over the previous day's levels. 24K gold too was trading higher in Mumbai with prices at Rs 6011 per 10 grams. Prices of the metal had dipped the previous day following the US Fed hinting at two more rate hikes in the coming months.

In Bangalore 22k gold per gram was quoted at Rs 5515 per gram for 22k, while in Chennai 22k gold was at Rs 5542 per gram. Hyderabad too saw similar rates for gold as that of Bangalore at Rs 5515 per gram. In the global markets, spot gold was trading at $1965 an pounce, after falling to levels of almost $1945 an ounce. Prices of the precious metal has seen a sustained rally over the last few quarters on hopes that at some stage we would see interest rates on a complete "pause mode".

Gold prices takes cues from interest rate movement, particularly bond yield movements in the US. On Friday, we saw bond yields moving lower, which helped support international prices for the precious metal. Investors have been investing in gold as a hedge and a measure of diversification. Demand has remain subdued as investors increasingly look to other investment options like debt and equity.