Why Is Gold Price Increasing in India? An In-Depth Analysis
Gold, a precious metal that has adorned Indian
culture for centuries, holds a dual significance: as a symbol of prosperity and
as a hedge against economic uncertainty. In recent times, the gold market in
India has experienced significant fluctuations, with prices on the rise. As
investors and stakeholders seek to understand this upward trend, let’s delve
into the factors driving the surge in gold prices.
What is the
Scenario Today on 10 Apr 2024
The gold price in India today varies
based on the purity (karat) of the gold. Here are the current rates:
- 22 karat gold:
₹6,576 per gram
- 24 karat gold (999 gold):
₹7,174 per gram
For different quantities, the prices are as
follows:
- 8 grams of 22 karat gold:
₹52,608
- 10 grams of 22 karat gold:
₹65,760
- 100 grams of 22 karat gold:
₹6,57,600
And for 24 karat gold:
- 8 grams of 24 karat gold:
₹57,392
- 10 grams of 24 karat gold:
₹71,740
- 100 grams of 24 karat gold:
₹7,17,400
Please note that these rates are indicative
and do not include GST, TCS, and other levies. For precise rates, consult your
local jeweler. Here’s a comparison of gold prices across major Indian cities:
|
City |
22K (10 g) |
24K (10 g) |
18K (10 g) |
|
Chennai |
₹66,710 |
₹72,770 |
₹54,650 |
|
Mumbai |
₹65,760 |
₹71,740 |
₹53,810 |
|
Delhi |
₹65,910 |
₹71,890 |
₹53,930 |
|
Kolkata |
₹65,760 |
₹71,740 |
₹53,810 |
|
Bangalore |
₹65,760 |
₹71,740 |
₹53,810 |
|
Hyderabad |
₹65,760 |
₹71,740 |
₹53,810 |
And here’s the gold rate in major countries
(per 10 grams):
|
Country |
22K (INR) |
24K (INR) |
|
Bahrain |
BHD 275 |
₹60,717.25 |
|
Kuwait |
KWD 224 |
₹60,631.20 |
|
Malaysia |
MYR 3,500 |
₹61,353.95 |
|
Oman |
OMR 285.50 |
₹61,710.25 |
|
Qatar |
QAR 2,695 |
₹61,504.48 |
|
Saudi Arabia |
SAR 2,690 |
₹59,673.61 |
|
Singapore |
SGD 988 |
₹61,137.93 |
|
United Arab Emirates |
AED 2,640 |
₹59,836.66 |
|
United States |
USD 715 |
₹59,497.87 |
Remember, gold has historically been a
reliable hedge against inflation, and many investors consider it an important
asset. These rates are for informational purposes
only, and you should verify the exact rates with your local jeweler1.
For The Understanding
the Gold Price Movement We Have To Dig in Past Months :
From February 25, 2024, to March 6, 2024, both
pure gold (24K) and standard gold (22K) witnessed consistent upward
trajectories. Here’s a snapshot of the price movement during this period:
|
Date |
Pure Gold 24K (₹) |
Standard Gold 22K (₹) |
|
6 March, 2024 |
₹5,719 |
₹5,242 |
|
5 March, 2024 |
₹5,672 |
₹5,199 |
|
4 March, 2024 |
₹5,639 |
₹5,169 |
|
3 March, 2024 |
₹5,550 |
₹5,087 |
|
1 March, 2024 |
₹5,548 |
₹5,086 |
|
29 February, 2024 |
₹5,450 |
₹4,995 |
|
28 February, 2024 |
₹5,425 |
₹4,973 |
|
27 February, 2024 |
₹5,414 |
₹4,963 |
|
26 February, 2024 |
₹5,411 |
₹4,960 |
|
25 February, 2024 |
₹5,422 |
₹4,970 |
Factors
Driving the Rise in Gold Prices
- U.S. Federal Reserve Rate Hikes:
- The U.S. Federal Reserve’s decision to raise interest rates aimed
at combating inflation had ripple effects on currency markets and
investor sentiment.
- While higher interest rates made alternative investments like gold
less attractive, concerns about inflation and economic uncertainty
outweighed this effect.
- Investors turned to gold as a store of value, driving up prices.
- Inflationary Pressures:
- Globally and domestically, inflationary concerns persisted,
bolstering demand for gold as a hedge against rising prices.
- Gold’s intrinsic worth tends to hold steady or increase during
inflation, making it a reliable store of value.
- Russia-Ukraine War:
- The ongoing conflict between Russia and Ukraine heightened
geopolitical tensions and global uncertainty.
- Investors sought safe-haven assets like gold to mitigate potential
impacts of instability on financial markets, leading to increased demand.
- Increased Demand:
- Geopolitical tensions, inflationary pressures, and economic
uncertainty collectively fueled demand for gold.
- Investors diversified their portfolios, turning to gold as a
risk-mitigating asset, further driving up prices.
- Equities Market Impact:
- As investors diversified into safe-haven assets, equities markets
experienced volatility.
- The rise in gold prices influenced capital allocation decisions,
impacting equities.
Looking
Ahead
The surge in gold prices reflects a complex
interplay of global events, monetary policies, and investor behavior. As
uncertainties persist, gold remains a beacon of stability and a valuable asset
for Indian investors.
In summary, the increase in gold prices in
India can be attributed to a combination of factors, including the U.S. Federal
Reserve’s rate hikes, inflationary pressures, geopolitical tensions, and
increased demand. As gold continues to glitter, investors must stay informed
and make prudent decisions in this dynamic landscape.
Disclaimer: The information provided here is
for educational purposes only and should not be considered financial advice.
Always consult with a qualified financial advisor before making investment
decisions.
Sources:
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