Mumbai / Delhi / Chennai: Gold rates across India have sunk to a five day low. According to rates tracked by Sify.com, retail gold rates for 999 quality gold are down by at least Rs 500 in the last three days (excluding weekend) alone.
Rates for 22 Karat or 916 Gold declined by a similar margin in the last three days.
Retail gold rates across India declined despite marginal hikes as reported by the London Fix.
US Spot Gold on Monday morning too traded range-bound between 1,809 to 1,828 per ounce.
The fall in gold has been proportionate to how the US Dollar index has managed a daily nudge. The US dollar index on Monday gained by 0.1 percent and was trading towards a three month high against its peers.
The Dollar index trades mostly inversely proportional to Gold.
However, Gold's recent gain must also be correlated with a movement in Oil prices. Although Crude Oil and Gold are not directly correlated they trade in correlation owing to their inflationary measures.
Crude Oil is supported during high periods of inflation whereas Gold is considered a good hedge against inflation. Higher Gold usually results in higher Crude oil.
On Monday, the OPEC plus announced improving production supplies causing Spot Gold to trade in the red. Gold Futures traded down by 0.1 percent, in sync with a 0.1 percent drop by Brent Crude Futures.
Disclaimer: Follow Sify Gold to track prevailing market rates across 70+ cities. Image attributed to Pexels.com