Gold Rates In India Rally By Rs. 400 On March 4, Should You Buy?

Indian gold rates are very volatile in the domestic markets, due to rising inflation in the USA and the Russia-Ukraine geopolitical tensions. Indian gold prices have increased by around Rs. 400/10 grams for 22 carat gold on March 4. The 22 carat gold prices are quoted at Rs. 47,700/10 grams, and the 24 carat gold rates are quoted at Rs. 52,040/10 grams.

Other than the Russia-Ukraine tensions, the US inflation rate is now at a 40-year high level. The central bank of the USA, the Federal Reserve is trying to control it, and the Fed can hike the interest rate this month for that purpose. If the Fed raises the interest rate, gold prices can fall internationally. Similarly, in India the yellow metal will also fall, India imports gold from foreign markets, to meet domestic demands. Investors are looking forward.
Apart from the inflationary, the Economic Sanction imposed on Russia is another significant incident. Commenting on that, Fed Chair Jerome Powell said that it might have some 'unintended consequences'. Powell added, "Everything is so uncertain. We don't want to add to the uncertainty. At times like these, we move carefully."
Significantly, the US Dollar index is also rising now, as the USA's economic situation improving and the country is holding a strong position in the international picture at the current time. Although, gold rates and the US dollar index are adversely related, but the Russia-Ukraine tensions have changed this fact.
Additionally, the Union Government of India is also concerned about the geopolitical situation and trying to bring back Indians from Ukraine. Reports inform that the Indian PM Narendra Modi is chairing the meeting to review the Russia-Ukraine geopolitical tensions.
In the global markets, gold rates are very volatile now. The Comex gold futures gained by 0.33% and were quoted at $1940.70/oz, till last traded. The spot gold prices are quoted at $1937.00/oz, falling by only 0.03%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.05, gaining by 0.33%. In India, the MCX gold in April future quoted at Rs. 51,960/10 grams, gaining by 0.37%, till last traded.