In India, today on March 24, the 22 carat gold rates gain by Rs. 600 and the 24 carat gold rates gain by Rs. 640. The price of 22 carat gold per 10 gram is quoted at Rs. 47950 today, while for the 24 carat gold, the rate is Rs. 52310.
Inflation is one of the important reasons behind the bullish trend in the gold rates internationally. The high inflation rate in the USA is not also expected to be in control any time soon, as analysts are expecting. Earlier, they thought it that inflation is transitory, but the situation turned to a different road in 2022. US Federal Reserve’s official thinks that the Fed needs a 50bps interest rate to control inflation. The current 25bps rate hike is not enough to combat a 40 years high inflation. With high inflation, the gold rates are surging sharply, and the rate hike has failed to drag the gold rates down.
With the Russia-Ukraine tensions, gold rates are staying bullish now. The US Senators will be discussing freezing Russia’s gold with US Treasury Secretary, which can again surge the gold prices in the international markets. Additionally, the Biden administration is preparing more sanctions on above 300 members of the Russian Parliament. Russia-Ukraine war is the major driving force of gold rates at the present market. However, the situation within Russia, is quite volatile.
Recently, Russian climate envoy Anatoly Chubais has stepped down as he is having different opinion than President Vladimir Putin on the war against Ukraine. These developments are triggering the markets more and commodity markets including gold is staying bullish.
Today, the Comex gold futures were quoted at $1940.40/oz, gaining by 0.16%, till last traded. Yesterday it was last quoted at $1937.30/oz. The spot gold prices are quoted at $1941.40/oz, gaining by 0.19%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.81 gaining marginally by 0.18%. In India, the MCX gold in April future quoted at Rs. 51,805 grams, gaining by 0.07%, till last traded.