Indian Gold Prices Fall Rs. 500 In Last 2 Trading Days, US Dollar Up Sharply

Indian gold prices are on the verge of falling for the past two days, after US Federal Reserve Chairman Jerome Powell indicated a more restrictive policy stance at the Jackson Hole, Wyoming Federal Reserve annual symposium, to control inflation within 2%. The US Central bank can initiate further rate hikes in September, Powell mentioned, depending on upcoming data. The commodity markets reacted negatively after that. Additionally, the US Dollar index hit a fresh 52-week high today, pulling the gold rates down.

The international gold rates have again fallen sharply today. Similar to gold, the global silver prices in Comex futures are also struggling and are being traded at around a 1.94% lower level than yesterday. Following the same trend, Indian gold prices have also plunged by Rs. 150-170/10 grams today, on August 29. The 22-carat gold rate stood at Rs. 47,150/10 grams, and 24-carat gold rate stood at around Rs. 51,430/10 grams.

Not just the US Fed is expected to raise the interest rate, the ECB's Villeroy de Galhau also indicates a 'significant' rate hike in September, and to neutral it by the year-end. These rate hikes are going to leave sharp impacts on gold prices, globally, and domestically.

Today, the Comex gold futures were quoted at $1,732.10/oz, falling by 1.01%, from the last trading day. Yesterday it was last quoted at $1,749.80/oz. The yellow metal fell by 5.95% this year in the futures market. The spot gold prices were last quoted at $1722.00/oz, falling by 1.04%, from the last trading day. The US Dollar index is quoted at 109.34, gaining by 0.15%. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 50876/10 grams, falling by 0.71%, from the last trading day.

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