Why Is Gold Price Increasing in India | The Amit Gahlyan

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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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Sources:

1. Forbes Advisor¹
2. ICICIdirect²
3. CNBCTV18³