Indian Gold Rates Fall By Rs. 500, Globally Quoted Below $1,764: US Dollar Surges To 52-Week High

Indian gold rates fell sharply today. Today, the 22-carat gold rate is quoted at around Rs. 47,600/10 grams, and 24-carat gold rate is quoted at around Rs. 51,930/10 grams, falling by Rs. 500, and Rs. 540 respectively. With the sharp gain in the US Dollar index, gold rates have plunged in the global markets and India.

Gold is a US dollar-dominated asset class. With the rise in the dollar index, gold rates fall and vice versa. The US Dollar index has been gaining in the past two weeks significantly. Today, the US dollar index in the spot market surged to 106.57, gaining by 0.04%. With the fresh 52-week high range of the US Dollar index, gold and silver are under pressure ow. Additionally, the US bond yields are thriving now, which is another reason that other commodities and precious metals' prices are falling. However, in India, the recent fall can be good for the jewellers, the retail sales are expected to gain.

Today, the Comex gold futures were quoted at $1,763.10/oz, falling by 0.04%, from the last trading day. Yesterday it was last quoted at $1,763.90/oz. The spot gold prices were last quoted at $1764.60/oz, falling by 0.11%, from the last trading day. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 51258/10 grams, falling by 0.09%, from the last trading day.

Additionally, understanding the importance of gold, the central banks, globally have purchased gold significantly, for the second consecutive month in May. According to a World Gold Council (WGC) report, the central banks have increased their gold purchases. WGC informs that the central banks have added 35 metric tons to the global gold reserves in May after buying 19.4 tons in April. WGC said, "It shows that gold's performance during a time of crisis and its role as a long-term store of value/inflation hedge are key determinants of central banks' decision to hold gold."

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