Indian Gold Rates Quoted At Rs. 48,200: Ukraine Interested In Peach Talk On War With Russia

In the international markets, the yellow metal fell marginally today, than yesterday's trend. Indian gold rates have remained the same as yesterday. In the country, the 22 carat gold rates are quoted at Rs. 48,200/10 grams, while the 24 carat gold rates are quoted at Rs. 52,590/10 grams. However, gold was able to hold its position above the $1950/oz level, as US home sales remained weak in February, according to the latest published report.

With considerable economic growth, gold rates will stay moderate or bearish. But the February pending home sales in the USA were down 4.1%, while in January it dropped 5.7%, according to the National Association of Realtors (NAR). The same data is also down 5.4% compared to the last year.

Inflation can strongly drive the gold rates in the global markets. The Federal Reserve Chair Jerome Powell has already hiked the interest rate by 25 bps, however, it was not able to drag down the gold rates. The next report will state how it will impact the inflation data. Again Powell has recommended that the fed could raise interest rates by 50 basis points in May. With that rate hike, government bonds will be more profitable, hence gold market can be marginally bearish. Investors are looking out for that.

The Russia-Ukraine war, which is leading the gold market now, has taken another turn. Russia has now indicated that it might focus on territory in Ukraine which is claimed by Russian-backed separatists in the East. Ukraine's troops became more offensive to recapture towns apart from Kyiv. However, Ukrainian President Volodymyr Zelenskyy has again requested Russia to negotiate about the geopolitical tensions and he is interested to host a peace talk with Russia. Further development on the war will again drive gold rates. With more intensified war, gold rates can surge further.

Today, the Comex gold futures were quoted at $1957.60/oz, falling by 0.23%, till last traded. Yesterday it was last quoted at $1962.20/oz. The spot gold prices are quoted at $1959.40/oz, surged by 0.08%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.80, gaining marginally from yesterday. In India, the MCX gold in April future quoted at Rs. 51,888 grams, falling by 0.36%, till last traded.