Indian Gold Rates Sharply Down By Rs. 500, As US Dollar Index Hit Fresh 52-Week High

Indian gold rates are sharply down today, on September 7, on weak global cues. The US Dollar index hit a fresh 52-week high today at 110.69, which immediately pulled the commodity prices down in the global markets. Gold is a dollar-dominated asset class. So, any rise in the US Dollar index impacts gold rates negatively. Today the 22-carat gold rate stood at Rs. 46,400/10 grams, and 24-carat gold rate stood at around Rs. 50,620/10 grams, down by Rs. 500 and Rs. 540, respectively.

ISM (Institute for Supply Management) published positive US services sector data for August on Tuesday, which helped the US Dollar index to gain over the past two days. ISM said that the US services sector strengthened at a faster pace in August. Commodities came under pressure after that, gold rates in the international spot markets dropped to around US$ 1692/oz, however, revived marginally later.

The ISM services index increased to 56.9%, marginally higher than the July level. Additionally, the new orders index increased by 1.9% points, and employment increased by 1.1 points. Economists at ISM think that a sharp gain in business activity, new orders, and employment boom have helped the US Services Industry to increase in the last month. Hence, analysts at ISM are now optimistic that the US is not in a recession, leading to a higher US Dollar index today.

Today, the Comex gold futures were quoted at $1,714.70/oz, up by 0.11%, at the time of writing. Yesterday it was last traded at $1,712.90/oz. The yellow metal fell by 6.37% this year in the futures market. The spot gold prices were last quoted at $1705.80/oz, up by 0.15%, from the last trading day. The US Dollar index is quoted at 110.32, up by 0.10%, at the time f writing. In India, the Mumbai Commodity Exchange (MCX) gold in October future was quoted at Rs. 50522/10 grams, up by 0.18%, from the last trading day.

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