Indian Gold Rates Quoted At Rs. 46,550, Globally Gold Tanks Sharply As US Bonds Rally

Indian gold prices are stressed this week, before Diwali. Today, on October 19, in India the 22-carat gold rate is quoted at Rs. 46,550, and the 24-carat gold rate is quoted at Rs. 50,780/10 grams. Additionally, today, the silver price fell by Rs. 200/kg in the domestic markets and was quoted at Rs. 56,400/kg. In the international markets, the yellow metal is falling sharply now, as the US bond yields are soaring, expecting a sharp interest rate hike from the US Fed.

However, before Diwali, a falling gold price is expected to boost the retail gold demand in the country.

Today, the Comex gold futures were quoted at $1,632.90/oz, down by 1.38%, till last traded. Yesterday it was last traded at $1,655.80/oz. Till today, the yellow metal fell by 11.35% this year in the futures market. Meanwhile, the US 2-year Treasury bond yield was quoted at around 4.546%, and the US 10-year Treasury yield was quoted at around 4.119%, at a historically high level. Today, the US Dollar index is quoted at 112.99, at the time of writing. Additionally, today, in India, the Mumbai Commodity Exchange (MCX) gold in December future is quoted at Rs. 50201/10 grams, down by 0.42%, from the last trading day.

"Technically, the gold futures bears have a solid overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at today's high of $1,659.50 and then at this week's high of $1,674.30. First support is seen at $1,630.00 and then at $1,622.20," commenting on the global gold market, analyst Jim Wyckoff told Kitco News.