Inflation Worries Keeping Gold Rates Surged, In India: Check Price

The increasing inflation rate in the USA has been influencing the US stock indexes and asset markets differently. The stock indexes are being traded marginally lower, while the asset market including gold is surging. Gold price in the Comex futures once again successfully traded above $1820/oz range, which is targeting a promising week for the metal globally. However, the US Dollar index is also rising, as the job market has improved in the US, in January. Now, in line with the international gold rates trend, Indian gold prices are also showing a bullish trend.

Meanwhile, the global political and economic situation is going to impact the gold market significantly. CME Group, in a report titled 'Gold's Relative Performance Stands out in Turbulent Times', stated, "Geopolitical risks have certainly increased with a crisis unfolding between Russia and the Ukraine that could yet result in armed conflict in Europe. This comes on top of ongoing tensions between the US and China over Taiwan as well as the threat of conflict in Korea. For many investors, the precious metal could appeal as a safe haven asset."

However, the gold traders and investors are now waiting for the US Federal Reserve's March policy meeting, where the subject of an interest rate hike will be discussed. The US Fed can hike its interest rate by 0.5% in March, according to analysts, to combat the inflation rate. At present, the gold price is surging as a hedge against inflation. But with a rate hike, the metal market can perform bearishly.

Gold prices in India, on February 8, 2022 mostly stayed bullish. Today, 22 carat gold prices are quoted at Rs. 45,200/10 grams, gaining by Rs. 200/10 grams. On the other hand, the 24 carat gold rates are quoted at Rs. 49,250/10 grams, gaining marginally. In most of the important cities for the gold market, like Hyderabad, Bangalore, Kolkata, and Chennai, gold rates gaining by Rs. 200/10 grams.

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

The Comex gold futures fell by 0.04% and were quoted at $1819.80/oz, till last traded. On the earlier day, Comex gold futures closed at $1820.60/oz. The spot gold prices were quoted at $1820.70/oz, fell by 0.03%, till last traded. The US dollar index in the spot market stood at 95.60, gaining by 0.20%. However, in India, the MCX gold in April future quoted at Rs. 48,255/10 grams, gained by 0.06%, till last traded.