Gold Rates Softens To Rs. 47,150, US Fed Chair Powell Says US Is Not In Recession Currently

Gold rates in India soften today, after surging significantly yesterday. The 22-carat gold rates today stood at Rs. 47,150/10 grams, and 24-carat gold rate stood at around Rs. 51,440/10 grams, falling by around Rs. 200-210/10 grams today. The yellow metal in the country followed the global trend, as the gold market was bearish in the international futures markets.

The US officials are hawkish now, for controlling the surging inflation rate, they have been increasing the interest rate this year. In the latest FOMC meeting, the Fed hiked the rate by 75bps. Many analysts earlier expected that along with high inflation, the recession is going to be a major issue for the economy. However, commenting on the Q2 GDP report, US Fed Chair Jerome Powell said, "I don't think the US is currently in a recession. There are too many areas of the economy that are performing too well. I would point to the very strong labor market. It is true that growth is slowing, but generally, GDP numbers are revised pretty significantly." The US central bank will be taking its next policy measures depending on the economic situation, eventually, the next policy will impact the gold rates.

Gold rates in the global markets

Today, the Comex gold futures were quoted at $1,786.90/oz, falling by 0.17%, from the last trading day. Yesterday it was last quoted at $1,789.70/oz. The yellow metal fell by 2.99% this year in the futures market. The spot gold prices were last quoted at $1770.50/oz, gaining by 0.53%, from the last trading day. The US Dollar index was quoted at 106.29, falling only by 0.10%. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 51602/10 grams, gaining by 0.43%, from the last trading day.

Analyst's view

Additionally, commenting on the present gold market trend, OANDA's senior maker analyst Edward Moya told Kitco News, "The US dollar got a major boost as the latest round of Fed speak supports the idea that the interest rate differential will widely remain in the dollar's favor. Geopolitical jitters could also draw safe-haven flows mainly into Treasuries and that will support the dollar. Gold is trying to be a safe haven again and this latest round of international risks to the outlook will let us learn quickly if it becomes one." Moya added, "Gold pared gains after Wall Street became optimistic that tensions between the two world's largest economies would get out of hand. A strong dollar is also weighing on gold as the greenback's pullback over the past couple of weeks appears to be over."

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