Indian Gold prices Surge By Around Rs. 200, On March 12: What To Expect Further?

Indian gold prices have gained by around Rs. 200 today, on March 12. In the domestic markets, 22 carat gold rates quoted at Rs. 48,400/10 grams, and the 24 carat gold rates quoted at Rs. 52,800/10 grams. Gold rates are uncertain to anticipate now considering the rising inflation rate, along with the Russia-Ukraine war.

Significantly, USA CPI inflation stood at 7.9% in February, at a 40 years high range again. The Fed policy meeting might tighten the country's monetary roadmap to keep the inflation rate under control. The US Fed's conclusion can shift the gold price current trend soon. On the other hand, the markets are now 'pricing in 95.1% chance of a 25-basis-point hike next week'. The US Fed Chair Jerome Powell recently testified that he will support a traditional 25-basis-point hike at the March policy meeting, and as an impact gold rates can drop then.

Additionally, Russia's further movement in Ukraine is going to be analyzed; Russia recently called for a Security Council meeting regarding the biological laboratories in Ukraine. If Russia intensifies attacks in Ukraine, the gold rates can again go up soon.

Forecasting the gold price trend, Gary Wagner, editor of TheGoldForecast.com commented to Kitco News, "If the talks yield a real solution and it came with the fact that Ukraine is willing to compromise because my belief is that Putin is going to stay the course. The longer it took, the more aggressive he would get, and the more damage he would do to Ukraine, he'd pummel the entire country. What I think for a long-term prognosis is in fact there is a truce or peace, we could see gold retrace, we could see it go to, say, $1,952/oz."

Today, the Comex gold futures fell by 0.57% and were quoted at $1980.80/oz, till last traded. The spot gold prices are quoted at $1992.10/oz, falling by 0.31%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.12, gaining by 0.15%. In India, the MCX gold in April future quoted at Rs. 52,800/10 grams, falling by 0.82%, till last traded.