Indian Gold Rates Increase, After US Fed Announces 50bps Interest Rate Hike

Indian gold rates have surged only marginally today, as the US Federal Reserve has raised the interest rate by 50 bps. This gain in interest rate was quite expected by the analysts, hence it left only little impact on the gold markets globally. Earlier, Fed Chair Jerome Powell sounded hawkish about the country's monetary policy. Today, gold rates are gained by Rs. 400/10 grams in India. The 22 carat gold rate quoted at Rs. 47,400 and 24 carat gold rate quoted at Rs. 51,700/ 10 grams today.

On that matter, Jerome Powell said, "We raised by 50 bps today, and there is a broad sense within the committee that additional 50 bps should be at the table for the next couple of meetings...We'll make our decisions meeting by meeting as we learn from incoming data. The overarching focus is to bring inflation down to our 2% goal." The country is struggling with a 40 years high inflation rate. Powell added, "Inflation is much too high and we understand the hardship it is causing. We're moving expeditiously to bring it back down." Gold rates were surging in the last two months sharply, as a hedge against inflation. If the interest rate hike successfully controls the inflation rate, then gold rates can possibly fall. This will eventually Indian markets, similarly. A falling gold rate will help the retail demands to gain.

Today, the Comex gold futures were quoted at $1897.20/oz, gaining by 1.53%, till last traded. Yesterday it was last quoted at $1868.60/oz. The spot gold prices are quoted at $1898.70/oz, gaining by 0.82%, till last traded. On the other hand, the US dollar index in the spot market stood at 103.17, gaining by 0.60%. In India, the MCX gold in June future was quoted at Rs. 51,265 grams, gaining by 1.29%, till last traded.