Why Are The Gold Rate Gaining In India: Impact Of Global Inflationary Pressures

International gold prices are on the verge of gaining, which is eventually influencing the Indian price trend. Massively elevated inflation in the USA is the direct reason behind it, because, gold has been considered as a hedge against inflation. The US Fed is going to decide in March about the interest rate hike to control inflation. It will directly impact the gold rates in the global markets, to fall.

However, Austin Pickle, investment strategy analyst, Wells Fargo commented on this, "Risks remain, including the possibility of increasing interest rates. Yet, if gold were to breach the technically and psychologically important $1,900 level, we would expect 2022 to be a very good year for gold. Our 2022 year-end gold target is $2,000-$2,100/oz."

in addition to that, Analyst Jim Wyckoff, canvassing the upcoming gold rates trend in the intentional markets, told Kitco News, "April gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in February futures above solid resistance at the January high of $1,856.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the December low of $1,755.40. First resistance is seen at this week's high of $1,824.60 and then at $1,835.00. First support is seen at this week's low of $1,807.50 and then at $1,800.00."

With a gain in gold rates, investors and traders are gaining confidence in the yellow metal. However, it can affect the demands by common people in India.

Gold prices in India, on February 9, 2022, mostly stayed bullish. Today, 22 carat gold prices are quoted at Rs. 45,550/10 grams, gaining by Rs. 150/10 grams. On the other hand, the 24 carat gold rates are quoted at Rs. 49,690/10 grams, gaining by Rs. 160/10 grams. In cities like Hyderabad, Bangalore, Kolkata, and Chennai, gold rates surged by Rs. 150-190/10 grams.

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

The Comex gold futures gained by 0.10% and were quoted at $1828.40/oz, till last traded. On the earlier day, Comex gold futures closed at $1826.60/oz. The spot gold prices were quoted at $1828.00/oz, gained by 0.08%, till last traded. The US dollar index in the spot market stood at 95.59, falling by 0.01%. However, in India, the MCX gold in April future quoted at Rs. 48,505/10 grams, gained by 0.16%, till last traded.