Gold Price Recovers From Its 15-Month Low Overseas; Domestic Gold Rates Gain Too

Gold price which jolted the previous day to levels below $1700 and hit 11-month low witnessed some resilience and rebounded to $1717.8 per ounce as of writing this copy at 12:19 pm (IST). Though it is still trading weak. After striking to very low levels, gold on the previous day got a boost from a whole lot of factors namely bargain hunting, weak dollar index and the US-yield. Also, oil price gains propelled gains for the bullion.

Further gold did not reacted to the hike in interest rates by the ECB which on Thursday increased rates by 0.5%. This was the first rate hike by the ECB. The move though triggered gains for the Euro currency, led the dollar currency to sell-off, pushing gold rates higher from the low levels.

Gold seen to lose more of its shine amid risk-on sentiment and aggressive rate hikes despite recessionary and inflationary pressure

There is a view that if not for the week dollar index which is now in a sell off zone, gold could have lost more. Furthermore, the continuous gains as seen in the equities worldwide, with Indian equities now boasting gains for the sixth straight session, will possibly may take the sheen out of the safe haven asset.

Gold prices gain in India too

Amid a bounce back seen in gold price overseas, gold price in the retail market in India too have witnessed some modest gains. 22K and 24K gold in Mumbai is quoting higher by Rs. 400 at Rs. 46,400 and Rs. 50,620 per 10 gm. During the week, in 3 out of 5 sessions, gold has registered gains.