Gold Prices Fall By Upto Rs. 820/10 gm; Aggressive US Fed Minutes Weigh

Gold price in India are down for another day even though international rates are somewhat in the positive as dollar weakness weighs. In the retail market, gold in India is down by up to Rs. 820 per 10 gm. Likewise, gold in Mumbai is quoting for Rs. 51,110 per 10 gm for 24K, while for 22K it is at Rs. 46,850 per 10 gm, down Rs. 750 per 10gm. In two days, gold price value has come down by around Rs. 1300 per 10 gm.

International gold rates

Gold rates internationally has gained on softer dollar as the Fed minutes released yesterday clarified in a big way on the monetary policy stance going ahead. The US Federal Reserve didn't mind taking an aggressive stance to curb inflation even though it be at the cost of recession hitting the county's shores. Dollar on the announcement lost its gaining momentum and last at the time of writing this story at around 10:21 am was down by 0.20% and likewise spot gold was at $1744.5 per ounce. Though this is a steep decline from the key psychological level of $1800 per ounce of over 3%.

What next for gold?

Kitco earlier mentioning the WGC report said gold shall be seen gaining as the world over central banks have been piling up on gold. This is though optimistic for the yellow metal. There is a view that as the central bank has put its plan to aggressively hike rate, gold is seen drifting and testing its long term support of $1730 per ounce.

Nevertheless as per an expert this fight of the Federal Reserve against inflation can be beneficial for gold prices. In a report by Jesser Felder it is highlighted that though inflation is seen to quickly come to comfortable levels it isn't so and as historical data suggests it takes considerably longer.

And in the process gold will probably gain its appeal and shall continue to shine in comparison to equities.