Why Are The Gold Rates Falling In International Markets: Good Time To Buy?

Gold rates in the global markets are being pulled down now, as the traders and investors are pausing a bit. They are waiting for fresh fundamental inputs that will lead the near-term price direction for the metal. Gold rates were quite volatile in the recent period because of the Russia-Ukraine geopolitical uncertainties. As a safe haven, the gold market was bullish in March, but in April, the precious metal is falling marginally. Like in the global markets, the same trend is being followed in India. The Russian government is expected to be soft about the war situation now, and investors are getting confidence. So, investors are also looking forward to equities and bonds.

In India, gold prices are marginally bearish now. On April 5, the 22 carat gold rates are quoted at Rs. 47,800/10 grams, and the 24 carat gold rates are quoted at Rs. 52,140/10 grams, same as yesterday. On the other hand, in Chennai, 22 carat gold rate is quoted at Rs. 48,160/10 grams, while in Delhi, Hyderabad, Bangalore, Kolkata, and Kerala 22 carat gold rate is quoted at Rs. 47,800/10 grams.

The US dollar index is marginally higher and while the benchmark US 10-year Treasury note is at present yielding 2.423%. With the gain in the US Bond yield, the gold rates and other assets will drop in the markets. Gold rates are directly related to the US dollar index, it is a US Dollar dominated asset class. The US Dollar index is on the verge of gaining, which is influencing the gold rates to be bearish now.

Commenting on the upcoming price trend, analyst Jim Wyckoff told Kitco News, "The June gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00." The gold market can be under pressure in April. This can be positive for retail gold demands in India.

Today, the Comex gold futures were quoted at $1930.60/oz, falling by 0.17%, till last traded. Yesterday it was last quoted at $1934.0/oz. The spot gold prices are quoted at $1931.30/oz, falling by 0.15%, till last traded. On the other hand, the US dollar index in the spot market stood at 99.02, gaining by 0.04%. In India, the MCX gold in June future was quoted at Rs. 51,466 grams, falling by 0.13%, till last traded.