Gold has over the years been a perfect hedge against inflation. Investors are increasingly looking at gold as an important investment. Goodreturns (OneIndia Money) is providing gold price in India herewith for our readers informational purposes only. These gold rates are updated today and are sourced from reputed jewellers in the country.
|Gram||22 Carat Gold
|22 Carat Gold
|Daily Price Change|
|1 gram||₹ 4,780||₹ 4,790||₹ -10|
|8 gram||₹ 38,240||₹ 38,320||₹ -80|
|10 gram||₹ 47,800||₹ 47,900||₹ -100|
|100 gram||₹ 4,78,000||₹ 4,79,000||₹ -1,000|
|Gram||24 Carat Gold
|24 Carat Gold
|Daily Price Change|
|1 gram||₹ 5,215||₹ 5,225||₹ -10|
|8 gram||₹ 41,720||₹ 41,800||₹ -80|
|10 gram||₹ 52,150||₹ 52,250||₹ -100|
|100 gram||₹ 5,21,500||₹ 5,22,500||₹ -1,000|
* The above gold rates are indicative and do not include GST, TCS and other levies. For the exact rates contact your local jeweller.
|City||22 Carat Gold
|24 Carat Gold
|Chennai||₹ 48,220||₹ 52,600|
|Mumbai||₹ 47,800||₹ 52,150|
|Delhi||₹ 47,950||₹ 52,310|
|Kolkata||₹ 47,800||₹ 52,150|
|Bangalore||₹ 47,850||₹ 52,200|
|Hyderabad||₹ 47,800||₹ 52,150|
|Kerala||₹ 47,800||₹ 52,150|
|Pune||₹ 47,830||₹ 52,180|
|Vadodara||₹ 47,830||₹ 52,180|
|Ahmedabad||₹ 47,850||₹ 52,200|
|Jaipur||₹ 47,950||₹ 52,310|
|Lucknow||₹ 47,950||₹ 52,310|
|Coimbatore||₹ 48,220||₹ 52,600|
|Madurai||₹ 48,220||₹ 52,600|
|Vijayawada||₹ 47,800||₹ 52,150|
|Patna||₹ 47,830||₹ 52,180|
|Nagpur||₹ 47,830||₹ 52,180|
|Chandigarh||₹ 47,950||₹ 52,310|
|Surat||₹ 47,850||₹ 52,200|
|Bhubaneswar||₹ 47,800||₹ 52,150|
|Mangalore||₹ 47,850||₹ 52,200|
|Visakhapatnam||₹ 47,800||₹ 52,150|
|Nashik||₹ 47,830||₹ 52,180|
|Mysore||₹ 47,850||₹ 52,200|
|Date||22 Carat||24 Carat|
|Aug 19, 2022||₹ 47,800 -100||₹ 52,150 -100|
|Aug 18, 2022||₹ 47,900 0||₹ 52,250 0|
|Aug 17, 2022||₹ 47,900 -100||₹ 52,250 -110|
|Aug 16, 2022||₹ 48,000 -150||₹ 52,360 -170|
|Aug 15, 2022||₹ 48,150 0||₹ 52,530 0|
|Aug 14, 2022||₹ 48,150 0||₹ 52,530 0|
|Aug 13, 2022||₹ 48,150 400||₹ 52,530 440|
|Aug 12, 2022||₹ 47,750 400||₹ 52,090 440|
|Aug 11, 2022||₹ 47,350 0||₹ 51,650 0|
|Aug 10, 2022||₹ 47,350 -600||₹ 51,650 -660|
|Gold Rates||22 Carat||24 Carat|
|1 st July rate||Rs.47,850||Rs.52,200|
|31st July rate||Rs.47,200||Rs.51,490|
|Highest rate in July||Rs.48,100 on July 5||Rs.52,470 on July 5|
|Lowest rate in July||Rs.46,000 on July 21||Rs.50,180 on July 21|
|Over all performance||Falling||Falling|
|Gold Rates||22 Carat||24 Carat|
|1 st June rate||Rs.47,500||Rs.51,820|
|30th June rate||Rs.46,650||Rs.50,890|
|Highest rate in June||Rs.48,360 on June 12||Rs.52,760 on June 12|
|Lowest rate in June||Rs.46,650 on June 30||Rs.50,890 on June 30|
|Over all performance||Falling||Falling|
|Gold Rates||22 Carat||24 Carat|
|1 st May rate||Rs.48,390||Rs.52,790|
|31st May rate||Rs.47,750||Rs.52,100|
|Highest rate in May||Rs.48,390 on May 1||Rs.52,790 on May 1|
|Lowest rate in May||Rs.46,100 on May 18||Rs.50,290 on May 18|
|Over all performance||Falling||Falling|
|Gold Rates||22 Carat||24 Carat|
|1 st April rate||Rs.48,100||Rs.52,470|
|30th April rate||Rs.48,400||Rs.52,800|
|Highest rate in April||Rs.49,850 on April 18||Rs.54,380 on April 18|
|Lowest rate in April||Rs.47,800 on April 4||Rs.52,140 on April 4|
|Over all performance||Rising||Rising|
|Gold Rates||22 Carat||24 Carat|
|1 st March rate||Rs.46,700||Rs.50,950|
|31st March rate||Rs.47,650||Rs.51,980|
|Highest rate in March||Rs.49,800 on March 9||Rs.54,330 on March 9|
|Lowest rate in March||Rs.46,700 on March 1||Rs.50,950 on March 1|
|Over all performance||Rising||Rising|
|Gold Rates||22 Carat||24 Carat|
|1 st February rate||Rs.44,900||Rs.48,980|
|28th February rate||Rs.47,000||Rs.51,280|
|Highest rate in February||Rs.47,250 on February 24||Rs.51,550 on February 24|
|Lowest rate in February||Rs.44,900 on February 1||Rs.48,980 on February 1|
|Over all performance||Rising||Rising|
|Gold Rates||22 Carat||24 Carat|
|1 st January rate||Rs.47,150||Rs.49,150|
|31st January rate||Rs.44,900||Rs.48,990|
|Highest rate in January||Rs.47,650 on January 22||Rs.49,830 on January 22|
|Lowest rate in January||Rs.44,900 on January 7||Rs.48,510 on January 7|
|Over all performance||Falling||Falling|
Now, first the important thing is that there is no difference between normal gold rate and hallmarked gold rate. Nobody charges extra for giving you hallmarked gold rate. It is the same rate at which the normal gold is sold. The only difference is that you are ensured of purity when you buy normal gold.
Hallmarked gold rate vs normal gold rate
1) There is no difference in gold prices
2) You are ensured of purity through hallmarking.
3) You have to take the precious metal to the essaying centres
4) Not many essaying centres are available in the market.
5) Some have advocated a stringent quality practice that has to established at the testing centres.
6) Still some way to reach the town and smaller cities.
7) Focus must be on swift expansion of the essaying centres so the smaller jewellers can make the best use of it.
The one thing that we need to mention is that hallmarked gold rates today in India do not differ in their pricing. What does differ is the quality of the precious metal. In any case what we advocate when you are buying is to buy into very high quality stuff. If there are no charges and difference between the two, it is better to stick to the quality hallmarked products. Investors have voiced their opinion on the poor number of hallmarking centres in the country and this needs to be addressed at the very earliest by the government of India. There is an urgent need to start more hallmarking centres, so quality gold is taken to all consumers in the country.
Gold, the precious metal is one of the most sought-after assets during turbulent times.
The investment in the precious metal has grown across the globe year on year basis. Since 2001, the metal has witnessed a growth of around 15% every year. The unique property of the jewellery metal of safe haven has renewed focus on effective risk management, since the financial crisis rocked the markets way back in 2008-2009.
Gone are the days where in gold was used as an ornamental metal adorned by women during festivities and celebrations. The changing pace of economic growth has driven even institutional investors to invest in this asset which acts as a source of long – term returns. It also acts as a diversifier which negates losses during volatility in stock markets.
The precious metal is one of the prominent liquid assets and it comes in handy at turbulent times. The yellow metal acts as a hedge against inflation and currency debasement. Apart from this, the metal outshines when equities and debt tumble in the stock markets.
India which is the gold loving county has greater affinity towards the metal and has occupied second position when it comes to consumption globally. It has a dual nature as an investment option and a luxury good. The value of metal has grown phenomenally over the years and hence the metal is one of the safest bet to invest in as an asset.
1) Currency: If the rupee slides against the dollar gold prices in India per gram becomes expensive.
2) International factors: These include volatile policies, slowing global economic growth, dollar strength against a basket of currencies.
3) Global demand for the precious metal. Demand plays an important role in determining the gold rates today per gram in India. If the demand is not robust prices would fall. On the other hand in times of good demand prices of gold would gain.
4) Interest rates: Not many know, but interest rate is a major factor that impact gold prices in India. When interest rates in major countries like the US go higher, gold rates fall and when they fall gold rates go higher.
5) Government polices: Some time the government also discourages the consumption of gold. For example, this happens when prices are rising and the current account is swelling. These days the government discourages the use of gold, so as to ensure that there is no problems with the deficit. Already the nation has so much gold, what do you with so much that is already there.
6) Prices: High gold prices today in India has also discouraged consumption in the country. Recently, the rates of gold in India ahs moved higher to as much as Rs 29,000 per 10 grams. However, the entire process is more complicated on how to arrive at gold prices in India, which we shall discuss in later passages of the article.
India does not mine gold. In fact, places like Kolar in Karnataka, which once used to mine gold are now closed. So, India imports almost all of its gold requirements. We use imported gold prices to arrive at 22 carats gold price in India. There are a host of importers of gold into India. Most of these are some of the top government owned banks, private sector banks and also many private companies In fact, the list of private companies have also gone-up in the last many years. Take a look at some of the major imports of gold into India, who ultimately have a hand in fixing the gold prices in India for the wholesale gold rates in India.
1) State Bank of India
2) Bank of Baroda
3) Union Bank of India
4) Bank of India
5) Punjab National Bank
6) Yes Bank
7) Minerals and Metal Trading Corporation of India
These are just a small part of the list of gold importers in the country.
Once these importers import the gold, they add the component of import duties, VAT etc., and sell the same to some of the wholesalers, who then retail the same to the retailers in the country. Now, how the prices of gold is determined in India, is part of the jobs of the bullion association, who arrives at the live gold prices in India. Though we say live gold prices in India, they do not change very often during the day. Largely the imports take place based on the requirements of the imports. These days imports have gone much higher then they used to be in the past and the government is doing its utmost to curb imports of gold. However, it has not been that easy, given the fact that the desire for gold continue to be solid in India. However, gold demand has almost fallen flat in 2017 and it would be interesting to see where we are heading in the next few weeks. There has also been a concerted effort to largely discourage the use of gold. How far that would be successful is difficult to say. At the moment, we are having a number of schemes, that would help to curb the use of gold in the country. Most of these schemes have their own advantages and disadvantages.
If you are looking at physical gold as an investment, we suggest that you do not. Buying into Sovereign Gold Bonds is a better option, as it would eliminate many risks like theft, fraud etc. You can consider buying these gold bonds from one of the listed commercial banks in the country. These bonds gove you an interest rate of 2.75 per cent and are reedemable at the price stipulated by the RBI from time to time. You can also consider buying them from the Stock Holding Corporation and also from the post offices. Many investors suggest that we should not be buying the bonds, given that the interest earned is taxable. However, you get two benefits from them. One is the capital appreciation and the other is regular iinterest. So, both ways it is a win win situation for investors. The question that often arises is the liqudity in these bonds is very poor and hence you may not be able to sell large quantities. The bonds are listed on the NSE and currently the price of these gold bonds is Rs 28,200 per 10 grams. These bonds are almost similar to gold ETFs in the sense that they track gold prices and hence the question that often arises is buying into them worth after all. Yes, the interest is lucrative considering that gold schemes in the country never offer you an interest unless they are some of the schemes of the popular jewelers in the country. It is better to get something out of your gold investments in India, rather then not getting anything out of it. We like the scheme because of its interest rates, while we dislike the scheme because of the lockin period.
However, there is a liability that may arise in the case of taxes. So, in short this is not tax free income that would normally assume.
Gold is being highly used these days for manufacturing of the electronic material or goods. The reason for using gold in electronics is gold have few properties which we cannot find in other metal such as gold does not corrode or tarnish. In most of the electronic devices, low voltages are used because of which there will be high chances of tarnish and corrode. Usage of gold will reduce this tarnishing and corrosion problem. Gold increases the durability of the components. Gold is used in components such as connectors, switches, relays, connecting strips, etc.
Even the electronic goods we use in our daily life have gold in it such as cell phones, calculators, personal digital assistants, global positioning system units, etc. A lot of big electronic appliances such as television also contains gold in it.
The main problem comes with this kind of usage of gold is we are losing gold due to this. As the gold used in these items are not being recycled. Though the gold being used in these devices is in minuscule quantity, but in the long term, this will affect. As of now due to the usage of gold in electronics is not giving any big impact on gold rates in India.
If you are looking to invest your gold safely in India, the best way would be to hire bank locker. However, it is important to remember that bank lockers are expensive, though they are the safest bet around. The hassle apart from the expense is the fact that each time you need the gold, you have to rush to the bank. On Sunday and holiday, you may not have access to the bank locker. Apart from this a fire or theft could be a real possibility when storing your gold. We suggest that the best way would be to buy electronic forms of gold, where you can buy bulk of your gold in the ETFs form. This way you can ensure that you do not have to worry about theft. It is not possible to steal gold in the ETF form. One interesting aspect is that you also end-up tracking gold prices. In any case, if you are looking to buy and save in gold, it is best to buy and save for the long term. Indian gold rates have been on a roll in the last few weeks and it looks like the trend is unlikely to be broken. Storage is a big issue and some of the mechanisms used in the past for storage are not the very best. In fact, some people are known to have stored gold under carpets beds etc, paving the way for theft. There are worries of storage of gold, which has now reached alarming levels. Hence, it is better to invest in gold in small amounts, rather than large, which can lead to theft of the precious metal. The other alternative of course is buying gold ETFs, which is the best and we have explained about this later elsewhere in the article. However, not many are aware of how to buy the same, which is why we have explained the same in length elsewhere. The later is more liquid and offers true value for money to say the very least. These days investors are also wary that if you buy physical gold, you could come under scrutiny, while there are no such problems with physical gold.
Storage is a big issue and some of the mechanisms used in the past for storage are not the very best. In fact, some people are known to have stored gold under carpets beds etc, paving the way for theft. There are worries of storage of gold, which has now reached alarming levels. Hence, it is better to invest in gold in small amounts, rather than large, which can lead to theft of the precious metal. The other alternative of course is buying gold ETFs, which is the best and we have explained about this later elsewhere in the article. However, not many are aware of how to buy the same, which is why we have explained the same in length elsewhere. The later is more liquid and offers true value for money to say the very least. These days investors are also wary that if you buy physical gold, you could come under scrutiny, while there are no such problems with physical gold.
If you are coming from abroad at least earlier, the one thing that you liked to being into the country was gold. These days there is not so much fascination to get gold into the country. However, there are a few things that you should keep in mind, just in case you are planning to get the precious metal. If you are a male passenger you cannot get gold more than Rs 50,000 in value into the country. On the other hand, if you are a female passenger you can gold valued till about Rs 1 lakh. It is pertinent to note that you can also ask your children to carry gold, as they too are entitled to the import allowance. Now there are a few things that you must note in this regards. There is often a question: how is the duty calculated on gold ie, at what price is the gold. The prices depends on the notified price set by the government of India for the import of gold. You may show the purchase receipt from abroad, but that is of little consequence when arriving at the gold rates in India. However, you cannot bring unlimited quantities of gold into the country. There is a limit of 1 KG that you can get into the country. So, the next time you are getting gold into India remember the various restrictions that are applicable. It is important for the government to always discourage gold imports in the country. This is because gold is paid for in dollar terms and is a drain on the forex reserves of the country. The government has tried to come up with some measures like the sovereign gold scheme to try and ensure that we reduce the consumption of physical gold. However, at all times it may not be possible to do the same and hence alternatives have to be made for the purpose. One has to probably try and figures out a way of using the existing gold that is already in circulation in the country. The one thing that has been very difficult to understand is that the nation has so much gold that is stacked up in households and it is time we explore those opportunities and release the precious metal asdemand continues to be high.
There is a limit of 1 KG that you can get into the country. So, the next time you are getting gold into India remember the various restrictions that are applicable. It is important for the government to always discourage gold imports in the country. This is because gold is paid for in dollar terms and is a drain on the forex reserves of the country. The government has tried to come up with some measures like the sovereign gold scheme to try and ensure that we reduce the consumption of physical gold. However, at all times it may not be possible to do the same and hence alternatives have to be made for the purpose. One has to probably try and figures out a way of using the existing gold that is already in circulation in the country. The one thing that has been very difficult to understand is that the nation has so much gold that is stacked up in households and it is time we explore those opportunities and release the precious metal as demand continues to be high.
There are many measures that tend to impact gold prices in India. The foremost among these is the geo-political tensions that take place in and around. Take the simple case of the recent Presidential elections in the United States. First, gold prices rallied sharply and then fell all over again, as investors realized that equity shares were moving ahead and they sold into gold. It later became clear that the new President's policies maybe volatile which further saw gold prices climbing all over again. So, in short global factors may continue to keep gold prices volatile in the next few weeks. Another thing that is worth mentioning is the fact that the big determinant in how gold moves if the movement of the currency. Amongst these the most important is the US dollar. When the US dollar moves higher, gold prices tend to move lower. However, a lot depends on the Indian currency, since it particularly relates to gold prices in India. So, you should always keep an eye on the gold prices in the country before anything else. This is a very big determinant in the prices of gold in India. Stronger rupee means cheaper gold prices, so go ahead and buy if the rupee falls. The recent election of Donald Trump as the US President has also ensured that gold prices remain volatile. The volatility may continue into the current year and the next year as well. However, one must be a little cautious while buying into gold, as there could be some downside risks as well. At the moment it would be difficult to see what those downside risks could be. One of the biggest risks of course would be the fast and furious pace at which the US Federal Reserve raises the interest rates in India. The faster the movement, the faster would gold prices fall.
The present import duty on gold in India is 10 per cent. The government keeps altering the import duty, based on the need to curb imports from time to time. In March once again gold imports had soared and there were reports that we may once again see some import duty intervention by the government of India. How far that is true is difficult to say. However, for the long term there is an urgent need to curb gold imports to avoid straining the current account deficit. Any such restrictions tend to have an overall impact on gold consumption in India, given the fact that India is one of the biggest consumers of gold in the world. The last time the government raised the import duty on gold there was some resentment that we saw. We are not sure if that could be a regular phenomenon, but that is now a possibility. In any case, adding to import duties would only end-up making gold even costlier then it is today. This is not in the best interest of consumers and is also not good for the shops that sell jewellery. This is because when demand falls, these shops that sell gold tend to be the worst affected. So, if you are looking to buy gold, do it whenever duties fall. However, guessing when that will happen is probably the most difficult thing to do at the moment. Again, how gold import duties change is a factor of a whole lot of things including the gold price movement in India. If the prices are too high the government would intervene and cut the import duties, which would make gold prices lower all over again. On the other hand if prices are low the government might think of hiking prices of the precious metal all over again.
Pricing of gold depends so much on the duties and duties are highly unpredicatble at the moment.
It is important to note that inflation does have a major impact on gold prices in India. For example, when inflation goes higher, so does interest rates. When interest rates go higher, gold prices tend to fall. This is because, people and investors rush to sell gold and buy fixed yielding selling government securities. So, one needs to be careful, when investing in gold. Investors must keep it is a natural hedge, against any decline in prices. If you are investing in large quantities it is better to check with experts especially your local jeweller. However, the important thing that one should note is that what matters to the international gold markets is the interest rates in the US. When these go higher, gold prices in India tend to higher, which is why interest rates assume paramount importance in India.
Gold prices in India are once again showing signs of bouncing back in 2018. After heavy hammering of the precious metal in 2018, gold is back and how. In India, gold rates have now surged and crossed the rs 28,000 mark. It has now reached Rs 28,200 as international prices of the precious metal has flared. There are a few things that are working for gold in the international markets and hence in India. let us take a look at these things. First, there is immense volatility in the global markets as US President Donald Trump's policies continue to remain volatile. This has led to a risk-off trade, which is pushing gold prices higher. At some stage investors believe that we would see equities fall and gold prices rally even further. The problem right now for gold demand in India is that if prices continue to rally, we might see demand for gold falling. When gold demand falls, it could lead to lead to prices too falling. Overall, this year has been good for the precious metal and 2017was also good. This is when compared to the yesteryears, when rates for the precious metal have remained little change or flat. It is time to exercise some discretion before buying into gold. The chances of making money are near negative as prices have gone higher. If you are looking to purchase get some bargain deals, as at the moment, we do not see too much in terms of demand nor an upside. How high prices will prevail during the course of the year is not predictable, hence you should buy on declines. In fact, for the last three months, we have been seeing a unlikely decline in gold prices. So, if you are looking at purchasing, we do not know what the appropriate levels would be. 2018 is unlikely to be a great year for gold prices in India, given the fact that gold rates in India have already rallied as much as 1 per cent. For prices to go higher, there would have to be sensitive geo political impact that would make its difference felt on gold prices in India.
Quantitative Easing, also popularly called QE is another factor that tends to impact gold prices in India, whether 916 22 karats gold or not. Let us give a simple example.
When an individual has money he would tend to buy, because he has excess money. In Quantitative Easing, what happens is that there is money supply added to the economy i order to boost consumption. Central Banks across the globe go ahead and buy securities and this leads to excess money supply in the system. This money finds its way into gold investments across the world, thus pushing prices of the precious metal higher. So, an increase in the QE also impacts gold prices in India today. This impact all forms of gold including the popular 916 gold prices in India. Of course, these days there is a very little of QE happening across the globe. The US has completed its QE phase, though there is some kind of easing that is happening in countries like Japan and Europe through the central banks in those countries. What is important though is the policies in the US, since heavy demand and investments come from that country. At the moment it looks very unlikely that we would have QE in that country. Once the global economy which is flush with money faces some liquidity problems, we could see gold prices falling in trade. Apart from QE there are also other measures that leads to gold rallying and one should be aware of these factors. All in all, it is a long haul for gold going forward and a much wait and watch approach. With the withdrawal of QE, we may see a decline in prices of the metal. With the US now winding down its QE programme there is a possibility that we might see an impact on gold prices in India.
There are many ways to check the purity of gold in India. Among these one of the popular ways to check gold is the magnetic method. This is known to be far more convenient than other ways like acid. Just imagine for an acid test you need to carry the acid around.
The magnet is far more easier as you can carry a small piece easily in your pocket. The beauty of this mechanism is that it is very easy to understand as well. The simple logic is that if gold is mixed with a metal, it will immediately get attracted to the magnet. Having said that the skin test also is quiet popular, if you hold the gold jewellery in your hands, it will discolour if it is not genuine. On the other hand, the one that is real will never, thus showing and proving the purity of gold. This is also a relatively simple way to understand and inspect when buying gold in India.
There are many factors that impact gold prices in India. The first is the international factors, which largely depend on a host of other factors. These include demand and supply for the precious metal. Demand of course comes from places like the Gold Exchange Traded Funds, as also from the central banks in the country. Now on the supply side, if there are more discoveries and more amount of mining that is done, it leads to further selling pressure in the metal. Now, this comes to the usual international factors that impact the prices. There are also a host of other factors that can leave you worried when it comes to gold prices in India. Among these include the various policies that the government would engage in, including the duties and taxes that are made applicable from time to time. One interesting fact that is worth mentioning is that gold prices have always rallied giving decent returns to investors. So, it does not matter whether there is demand or not. In the long run gold has always generated enough wealth and has helped investors make some quick money. So, if you are a long term investor, it can help you make money. However, lately the rise in the precious metal has been too fast and furious and hence returns in the future may not be forthcoming. However, it is unlikely that there would be many factors that influence gold prices and they all work in tandem with each other. How the government alter its policies is also crucial in the wake of changes that we see to the way its policies change. Let us give an example. After the Union Budget, there were some modifications made to the excise and other duty changes that were done. This resulted in gold prices soaring higher in India and also in turn impacting the sales of jewellery in India. In fact, as we write interest rates in the US are hardening and this could impact gold prices in India. So, you need to be a little careful of runaway rates in gold.
Inflation is not a major determinant of gold rates in India today. Individuals do argue that when inflation moves higher, along with them, you also have things like gold prices going higher. In fact, the only time gold prices go lower is when inflation goes higher. Let us give you an example. When inflation goes higher in the US, at such time gold prices fall, as the US Federal Reserve gears up to hike interest rates in the US. This leads to a phenomenon of selling in gold, as rising interest rates means individuals rush to sell gold and buy instruments where the interest rates are higher. This would typically be your sovereign bonds in the US. So, gold and US Bond yields move in different directions. hese are secure and offer you regular interest, which makes them great attractive bets for the long term. So, those who say that inflation and gold prices move in the same direction would be getting their statement wrong. The big determinant for gold in India in 2018 would be the direction of interest rate movements in the US, which should be higher and hence the prices of gold going lower are rather high. So, watch before investing. One thing we wish to state is that inflation in India is not a big determinant for gold prices across the world. Global inflation matters because of several reasons. The first is that inflation rise means interest rates rise, which leads to higher interest rates and hence an impact on gold prices. So, watch for this factor very carefully. So, overall you need to watch for inflation carefully, which could push interest rates higher in the country.
Gold has always attracted the fancy of people around the globe and Indians love gold. However, you will get plenty of stories on gold, but, did you know that there is a large amount of gold that remains undiscovered. There are many estimates to show that as much as 80 per cent of the gold presently remains not discovered at all.
Now, where is this gold? Nobody seems to have an idea, but, if there is adequate gold demand, it is unlikely that we will see pressures for gold in India, given the fact that there would also be good supply. However, one of the best things that there is a lot of gold available in the world in the form of gold coins, bars and jewellery, which can be melted, so there are no issues at all with regards to the same. How much of this is pure gold, is always the big question, given the fact that jewellery is always alloyed with gold.
Gold has created a special niche for itself. Most people consider it very simple to even sell, forget the buying of the precious metal. Let us give an example by comparing it with other asset classes. For example, it is very easy to buy and sell gold, as compared to real estate and even to some extent shares. Many individuals in the smaller towns and cities, may not even know what shares are. But, they do not what gold is and how to sell and buy the same. This is one advantage of buying and selling gold in India. It is east to understand and hence small time investors tend to get swayed by this. In fact, we believe that this is a big niche area for the precious metal. We advocate that you buy into gold on every dips as it is very difficult to predict prices of the metal. Apart from being a special niche as discussed, it is also bought because people enjoy hoarding the precious metal. The reason for hoarding the precious metal, is because Indians have always loved gold, and have a strong desire to own the metal. Over the years, this has also become a tradition in many households in India, to try and buy and store gold for a marriage or a ocassion. This is also a niche for gold in India, irrespective of gold rates in India.
You can buy gold coins in India in various grams. Interestingly, you get all kinds of weight for buying gold coins. these include 1 grams, 2 grams, 4 grams and upto 10 grams. There are various other ways to also buy the precious metal. You get gold in various designs like images of different godesses as well. Before buying gold you have to ensure the purity. Ideally, you can buy gold at some of the popular centres in India. If you buy gold by credit card there is also a tax that you would end-up paying on the precious metal. So, you need to be slightly careful. Also, if you are looking to buy the coins we suggest that you do so from the popular jeweler shops in the country. Another option is to look at bars, but, these are likely to be pretty expensive. If you are buying gold coins a good option would also be to look at some of the banks, which also tend to supply these coins. Some of them are Swiss gold coins and the packing is pretty much tamper proof. In short, you have the option of buying from several places. In all cases it is very important to check for purity of the metal. Also, do not forget to take a receipt while buying gold, as this may hold you in good stead, when you want to sell the precious metal. Go only for the long term buying of the metal. you can also buy gold coins, gold ETFs gold bars, soveraign gold bonds and the choices are plenty, it all depends on your own desire to own the kind and variety that is available. We suggest that you could opt for buying gold coins through the many banks in India, as most of them provide the Swiss variety and come with tamper proof cover.
According to information from the World Gold Council demand for gold from India was subdued last year. Nonetheless, India managed to once again overtake China in terms of gold consumption. In fact, jewellery demand in India has shot up significantly in the last few years, pushing demand for gold higher.
Despite the fact that there have been good substitutes like e-gold and gold ETFs, as an alternative to buying physical gold, investors continue to buy the precious metal in its present form.
The government has been discouraging gold imports through duties in order to curb the current account deficit. Last year it imposed a series of duty hikes, which are still in place to discourage the import of gold.
In the last few years, gold price movement has been sluggish, and last year the precious metal broke a 12-year winning streak. But, it has given substantial returns ever since the Lehman crisis erupted in 2008, which saw gold price in India rally. How far it would sustain is difficult to say. Honestly speaking, going foward we do not see any agressive bets on the metal happening in the near future.
Gold rates in India, depend on a host of factors, including international gold prices, currency rate movements and also the local tariffs. But, the singlemost important reason for gold prices to go higher, is international prices. When international prices of gold move higher, gold rates in India see a change.
The gold price today, would always be different then what you see yesterday. Gold prices in India, however, do not change on a Sunday, as there is no trading that is done. If you are looking at todays India gold rate, do not forget to visit our portal and check the updated rates.
Now let us understand each of the factors separately.
When inflation goes higher, gold prices tend to fall. This is because there are worries that interest rates would rise when inflation gains momentum in the economy. One big determinant of gold prices in Indis is the currency movement, so watch for early morning trade of the movement of the rupee against the US dolllar, which is another big factor. The biggest of these of course is the ability to of international prices to move. Greater the political tensions, threats of was and other factors, bigger would be the momentum of gold movement in India. This is because we see global demand gathering steam, which is why the domestic prices also tend to move in tandem. All in all, it is a good move for the precious metal in the coming days. So always check the rates before you buy into gold.
There are plenty of reasons to invest in gold in India. The first and the foremost is that it is a hedge against any fall in asset classes like real estate and equities. This means that it is one of the investments that provides you an excellent opportunity for diversification. There is no better instrument then gold, when it comes to diversification of assets. So, if you are an investor, who does not wish to put all his eggs in one basket, this has to be the investment that you need to consider. If you have not invested in gold, you are probably committing a mistake. It also provides some respite against bad times. The other advantage of gold is that it is very liquid, making it among the better asset classes, then something like real estate, which is much difficult to sell in times of neccessity. So, there are very few choices. Of coures, in India you tend to pay taxes, which thus reduces your overall returns from the precious metal.
Gold as an investment has given decent returns in the last one decade. In fact, gold prices in India have almost grown three times in the last 8 years, which is a superb set of returns. In fact, according to statistics available gold has given higher returns even in the United States. For example, the returns from this asset class has been better than US Government treasuries for alost 2 decades now.
Going ahead analysts do not expect that trend to break anytime soon. In fact, the precious metal has delivered higheer returns than even Eurobonds or Japanese debt. the metal is being preferred as a measure of diversification in case other asset classes remain risky. It is also very liquid, including Gold Exchange Traded Funds, which are the most riskiest. Therefore, it makes sense to stay invest in gold in India at the prices today for a long term.
India gold prices today, tend to fluctuate also based on the production of the precious metal. Once the largest producer of gold in the world was South Africa. In fact, there are reports that 60 to 70 per cent of the gold in circulation today has come from the mines of South Africa. However, the trend has very much changed now.
Today, the world's largest producer of gold is China. The country mines significant amounts of gold which has made it by far the largest producer. The trend of increase in production of the precious metal from China is likely to cotinue. If production of gold falls, it is highly likely that we may see a drop in the rates of gold in India today. Interestingly, demand has matched-uop with production, which is why the prices of the metal has not declined.
India as we all know does not mine gold. In fact, we never were the big players in mining the precious metal, unlike China, which is now the biggest miner of gold. So, how does India get all the gold. The government has appointed a certain number of banks that get this gold into India. So, in short they have been allowed to import gold. Now, after they import this gold, they are given to the distributors, who in turn supply the same to the large retailers or jewelers in the country. This is used by them as bars and coins to make the gold jewelery that we wear. However, there is an element of metal that is added as gold will break if used in the purest form. It is this mixture thay determines, how pure or impure gold is. This is why gold is sometimes brought into India from abroad.
Checking gold prices today is extremely important for the simple reason that gold is no longer the commodity that it used to once be. In fact, gold prices today are nowhere, where they were about 10 years ago. So, even a small variation in prices can lead to a big loss. It is therefore important to check the prices of the precious metal before buying into the same. It is also important to compare prices with each jeweller. Remember, that gold prices in certain cities are determined by the gold jewelers association and the prices annnounced accordingly. However, it is unlikely that between the local goldsmith the prices would defer. However, the larger and the more reputed jewelers may tend to charge more for making charges.
So, you need to be a little weary on that count. If you believe that the making charges of gold and jewelery is significantly high, we suggest that you look at other goldsmith, where you would get a decent price. Hence, it is always a good idea to compare, rather then paying huge amounts.
Gold being weighed in tolas was one of the most popular ways to describe gold buying in India. Investors or consumers often spoke of 1 tolas gold rate is today Rs 25,000. However, these days tola has been replaced by grams, which has been largely accepted by most for buying and selling the precious metal. This brings us to the question: How much is one tola gold? The answer is simple: One tola gold is today 11.6 grams. So, if you are purchasing 1 kg of the precious metal, you would find approximately Rs 85.7 tolas gold. So, if you want to know what would be the cost of the precious metal for 1 tola, then you need to simply multiply the per gram cost of Rs 26,000 by 11.6 to arrive at the final cost. This of course changes everyday in line with the todays daily gold rates in India.
If you are considering melting your old gold ornaments and making news ones, just examine, if the same is necessary. Do it only if it is necessary or else you would be wasting a lot of money. If you are asking us why? then we have plenty of reasons to tell you why. First of all what do you do with the precious stones that were in the ornaments. Who will value them? Secondly, there is a lot of wastage charges that are involved. For example, you could lose as much as 5 to 10 of the value of your gold on making charges that you paid and also the wastage charges. This is by no means small losses and the amounts are really significant. So, it is advisable to make sure that you do not melt gold. If you are doing so, it makes sense to melt the same at a reputed shop.
Physical demand for gold is sinking fast in India and there is little doubt about it. Demand trends from the World Gold Council show that the trend is unlikely to reverse. Over the years there has been on assault from gold on all fronts. The government of India to reduce gold consumption has increased duties and taxes. This is more to reduce the country's current account deficit. Demonetization some say has only increased the demand for gold. One cannot be sure of that. There are reports of huge investments taking place in Gold from Hyderabad, but, one cannot be sure of that. Then came the various ways to discourage physical gold consumption, including the sovereign gold schemes. We may soon have
Gold imports into India accounts for almost 10 to 15 per cent of all imports into the country and is next only to imports of crude oil. Gold rates in Indie have over the years gained significantly in the past 5 decades. In 1966 for example, gold was traded at Rs 83. This moved up significantly higher to Rs 432 per 10 gram. This was a decade in which gold prices simply gave almost 5 times returns to investors. By 1986 gold prices have moved up even further to cross the Rs 2,000 mark and was at Rs 2,200. As there was an Asiam emerging market crises gold moved even further to Rs 5,600 by 1996 and by 2006 and it was at Rs 8,400. But, the steepest gains for gold came thereafter, at the heart of the Lehman Brothers crisis, where gold rallied from levels to almost Rs 32,000. The gold rates in India are now closer to the Rs 27,000 mark.
Gold prices in India today tend to move based on international prices. They in turn move on currency fluctuations and a host of other factors like decision on interest rates and inflation. However, physical demand also plays a big role in the movement of gold. If there is excess liquidity in the system gold could move higher, as Gold Exchange Traded Funds tend to mop-up gold.
Another important factor is how central banks make their purchases. Today, as we all know, the United States has the highest gold reserves in the country. When many central banks start buying gold it tends to affect gold prices across the globe including India. However, they rarely sell in tandem, to avoid disrupting prices of the precious metal. So, all these factors influence gold rates in India today.
Gold demand in India in the rural areas continued to be soft this year.
This was largely due to the income hit in the farming sector. Also, the government has been making every effort and has plans to double farmer income in the next 5 years. This should see good demand for gold coming in from the rural areas of India. In fact, it is important to point out that bulk of the demand for gold jewellery in the country comes from the rural areas. Though the size of each transaction may not be too high, the fact remains that on account of the gold volumes, this makes the rural areas of great significance for overall gold demand in the country. While there is no definite statistics some estimates put the demand as high as 60 per cent from these areas vis a vis the urban areas.
There are many places where you can sell gold in India. There are specialized companies that purchase your gold. However, you need to ensure that you have your PAN card or identity proof in place. You may also have to produce a receipt from where the jewelry was purchased in case you want to sell jewelry. It is always a good idea to check the line gold rates in India today, before you sell gold. Companies that buy the precious metal have machines that can check the purity of the metal through a karat meter. This is extremely important as it would prevent you from getting duped. It also bring about greater transparency in determining the rates of the precious metal. Also, ask for the receipt with all the details of the gold you have purchased for your future use.
Gold has given superb returns to investors over the years. 22 karats gold price in India has jumped from Rs 63 in 1964 to near Rs 27,500 per 10 grams in the last 50 years. Just take an example of what has happened to gold in the last 10 years. gold prices have moved from Rs 10,500 gram before the Lehman Brothers crisis to the current rates of Rs 27,500.
Live gold rates in India depends on a host of factors including the likes of global development. In fact, these developments is only what has pushed the precious metal to such dizzying heights. In fact, even if you see gold rates in India 222 karats was trading at Rs 5,600, exactly 20 years ago in 1996 and has since grown almost five times. Hence, we can with some certainty say that the precious metal has given tremendous returns in the last so many years.
The gold we see or purchase in the market is mixed or alloyed with some other metals such as copper, nickel, silver, palladium and zinc. Considering with the least or cheapest gold alloyed with silver & copper is called pink gold or rose gold mixed with silver or copper sometimes is called the green gold and then comes white gold which is mixed with palladium, nickel & zinc which is white gold and the costlier one is the yellow gold alloyed or mixed with silver copper and zinc. The carats defines the purity of gold how much of gold exactly alloyed.
24 carats -99.9%
23 carats -95.6%
22 carats -91.6%
21 carats -87.5%
18 carats -75.0%
17 carats -70.8%
14 carats -58.5%
10 carats -41.7%
9 carats -37.5%
8 carats -33.3%
An important point to be noted is that the less carats the stronger the gold would be. Before buying the metal, always look for gold prices in the country.
Anybody trying to accurately predict gold prices is trying to pull a fast one. The fact is that nobody can predict the prices of gold in 2018. What we do know that the metal is going to see tremendous amount of volatility going ahead. This is because of various factors, including economic policies that are likely of new US President Donald Trump, as also geo-political tensions from across the globe. If you are looking to buy gold in India, it is best to check the gold rates today in India before buying. If you are comfortable with a certain level, go ahead and buy. If you are not, just wait for the prices of the precious metal to fall. This is the only way you are likely to make any decent money from the prices of the precious metal. In fact, gold in the international market last year gave returns of 9 per cent, which is not bad given the poor returns that we have seen in the last few years in the precious metal. If you are a long term investor, these things should not concern you and you could keep buying into the metal.
Before discussing 916 hallmarked gold rate, it is important to understand what this 916 hallmarked gold in India means. This is the finesse of gold defined. So you take 91.6 grams of pure gold in 100 grams of gold that includes alloy and arrive at 916, as simple as that. In simple terms 916 gold means 22 karats gold. Most gold rates for 916 hallmarked can be easily be got from your local jeweller. The other important aspect to understand is hallmarked gold and KDM, which are a must to check before buying gold in India. We have provided all the gold rates in India for 916 hallmarked gold.
Do not forget to look for things like the date of manufacture of the gold, the stamp of the jeweler etc., before you buy hallmarked gold in India. This way you are certain of the purity of the gold that you are buying. It is important to do that, so the chances of you getting duped when buying gold is minimal.
There are many advantages of investing in gold. The first and the foremost is that it is easy liquidity. For example, you can sell the precious metal any time you want. Of course, if it is the physical form you would barely get the actual cost of the gold, as there would be numerous charges that you would lose on, including the making charges. the other advantage is that it is a perfect hedge against inflation, as also against political turmoil. Hence, if you have not invested in gold, you are making a big mistake. At least an individual should have partial amounts in gold as investment. And yes, you can get instant loan against gold, which is not possible in other asset classes like real estate, which will under go valuation and stuff. So, gold loans will also serve your purpose in times of distress.
There are various gold buying options in India. Some of these include Gold ETFs, Sovereign Gold bonds Physical gold coins and bars and physical gold jewellery. Each has its own buying advantages and disadvantages. We like the gold bonds, because we believe that there is no other gold instruments in the country that offer you interest rates. At 2.7 per cent interest rate on the Sovereign Gold Bond, it remains the best bet. The gold bonds for investments had opened a few weeks back. You can also buy the Gold ETFs, but, if you are looking at investment, we strongly suggest that you avoid buying physical gold. There has to be at least some portion of your investment that has to be in gold, which is why buying the gold bonds is the best thing to do. You can also buy the gold ETFs that are listed on the National Stock Exchange. Not a bad deal to do at all.
Gold rates in India would depend on a number of factors, including international gold rates, local tariffs and also the currency movement against the dollar. One of the singlemost important factors for changes in gold prices is international gold rates. These depend on a number of factors like interest rates in the US. When interest rates in the US go up, gold prices fall and vice versa. What has happened in the last few weeks is that there are worries that Donald Trump's election could lead to inflationary pressures in the economy. This in turn could lead to higher inflation and lower gold prices. The belief is that Donald Trump's policies could lead to fiscal expansion and hence a pressure on interest rates and a sharp drop in the price of gold.
Do you know that you are liable to pay taxes on gold in India. If you buy and sell gold at a profit, there is a capital gains tax that would need to be paid. On the other hand, if your gold value crosses Rs 30 lakhs, you need to pay wealth tax on the same. However, most individuals are ignorant of the same. But, if comes in the purview of the tax authorities you would need to pay significantly higher amounts by way of taxes. There have also been reports that large amounts of gold deposited under the gold monetization scheme will attract income tax, unless the sources of acquiring such gold is clearly told to the income tax authorities. So, remember the tax liability on gold in India.
Interest rates and gold prices never go hand in hand. In fact, when interest rates rise, gold prices fall and vice versa. However, gold prices do not move with interest rates rise across the globe, but, really depends on interest rates in the US. For example, when interest rates in the US rise, gold prices fall. This is because investors move money from gold into fixed interest bearing government bonds. They use the opportunity of high interest rates, along with zero risk, as a major advantage. One thing looks certain at the moment is that we could see a couple of interest rate rise in the next few weeks. When that happens be rest assured that gold prices would dip. If gold prices dip below the Rs 25,000 mark in India, it could be worth buying into the precious metal. However, to make some money it would be advisable to buy gold ETFs.
The one important question that you must always ask yourself before buying gold in India is: How much gold would I actually get? The question arises because there are so many charges on the gold, including taxes and levies, making charges etc. If you buy a gold coin there is a tax element of 10 to 15 per cent, which pushes the cost price higher. Let us explain this with an example. Say you buy 8 grams of gold for Rs 27,000, you have actually paid Rs 3375 per grams, while when you sell you would get only the rate of Rs 2800 per gram. So, you have actually paid extra because of the making charges, taxes etc., on the gold, which has inflated the cost of the precious metal. So, the most important thing to ask yourself is the cost associated with the total cost of buying gold in India.
Today, we have various gold saving options, including the sovereign gold bond, gold ETFs, gold investment through gold coins and gold bars.
If you are looking at investing, buy gold ETFs, which are the best according to us. Apart from physical gold, today there are many options to buy gold in India, including the popular sovereign gold bonds. If you wish to invest in the gold bonds, they also offer you interest rates. Also, here is no worries of these being stolen like physical gold.
Gold rates today also depend on currency movement. If the rupee falls against the dollar, gold prices in India move-up, assuming that international gold prices are steady. Other factor that affects gold prices are the various duties and levies, which change over a period of time. The government changes the duties and levies on gold, depending on how gold prices move.
What is worrisome for gold now is that demand is slowly beginning to decline. Investors are looking at various options to invest in gold, including the not so traditional ETFs. India is the second largest consumer of gold after China. The demand in the country tends to impact rates as well. In a country, which has a liking for the precious metal, it is hard to believe that demand has slumped by a whopping 29 percent in the first three quarters of 2016, as compared to te same period last year. In fact, for the current year gold demand from India may not be more than 750 tonnes, which would be way lower than the 858 tonnes that the contry did in 2015. How far demand for the precious metal would continue to slump is difficult to say. Remember, that live gold prices in India today depend on demand for the metal.
The first is that when there is political turmoil or economic chaos, the first thing to rally would be gold prices. Sadly, if you have not invested in the same you would be a sad person. So, if you need to spread your investment gold is an obvious choice. The second reason to be buying gold is that it has been an excellent hedge against inflation. For example, in the last 8-10 years gold prices in India have tripled. So, they have given you better returns than even fixed interest bearing securities. So there is no reason why you should not be buying into the precious metal.
The last and the final reason is that it can be pledged and it is very liquid. For example, you can even take loans by pledging this precious metal. Today there are plenty of people who are willing to buy hypothecated gold. So, its is not a bad idea to stay invested. It has stood the test of times and that cannot be denied at all.
Demand for gold in India is gradually declining, if the trend of the first half is another to go by. In fact, according to statistics available with the World Gold Council demand for gold in India fell by a huge 42 per cent. This is not very encouraging to say the least. In fact, the government has also been trying to curb gold consumtion for various reasons, including poor demand for gold from the rural areas. However, in 2017 we might see much better demand owing to the increase in government salaries.
The recent move by the government of withdrawal of Rs 500 and Rs 1,000 notes, may also adversely affect the consumption of gold. The near term outlook for gold prices in India also looks a little grim as interest rates across the globe are likely to rise. All in all it may be slightly tough going for gold.
Gold investments have always stoood the test of time. In fact, prices have tripled in the last eight years or so. This makes gold investment always very attractive. It is also very liquid and can be sold easily. There are gold loan companies, where you can also pledge gold and get a loan. It is therefore always a good proposition to buy gold. Remember, before doing so, it is always a good idea to check the gold rates. We are providing daily gold rates in India. It is also imporant to remember that gold rates are updated twice everyday. Do take a look at the prices of te precious metal in case you want to buy gold.
These days one need not focus too much on the gold purity like before, as most of the gold in the country is hallmarked. It is always better to buy hallmarked gold in India as one can be ensured of purity. These days most of the gold that we see is hallmarked, which is why one can see some comfort level before buying gold from the large jewelry shops in the country.
However, if you have some suspicion on the purity of the gold in India, you can do an inspection. By and large, we find that the precious metal is of the purest form in India.
Talking of today's gold rates in India, we believe that prices would remain static, unless we have some definite cues from across the globe. There are various factors that influence gold prices in India, including local tariffs and duties, international prices of gold, which largely depend on interest rates. Apart from this, the movement of the rupee against the dollar, would also impact local prices in India.
In any case, before checking gold rates in India, you could go through the latest gold prices in India, which we have provided.
It is always a good idea not to buy tto much of gold as investment. One is that you need to pay wealth tax on it beyond a certain sum. On the other hand, it adds to the imports and puts a burden on the country's foreign exchange reserves. Remember, that we do not mine gold and hence India has to import gold. When we import such gold, we have to pay the same in foreign exchange and hence there is a forex outflow that happens.
Therefore you can buy the recently introduced sovereign gold bonds, which will also add to your portfolio. You also get an interest on these bonds, and there is no need to worry about storage facilities. The gold bonds are now made easily available through the length and breath of the country. So, go ahead and buy the same.
It is worth investing in gold schemes of various jewelers in India. This is because it helps you follow a systematic investment plan, whereby you can accumulate gold for marriage or a special ocassion. Earlier, jewelers in the city expected you to pay 10 installments and they would pay one and you could buy precious jewelry. However, these days with interest rates falling, jewelers in the city have altered their schemes. The schemes are not as lucrative as they used to be. However, for the purpose of accumulation of gold for important ocassions this could be a good bet. Some jewelers offer discount on making of gold charges, if you invest in the scheme. However, these schemes are good for those that want to make gold ornaments for marriage or wedding anniversary etc.
You can purchase gold anytime in India, depending on the need.
However, if you are an investor, it is best to exercise caution. Gold over the last few years has not given any phenomenal returns. So, it is best to buy only as a measure of diversification. If any other asset class like equities or real estate drops, gold would rally. This is because it is considered as a safe haven asset. However, you should not put all your eggs in one basket and spread the risk wth different asset classes.
In any case, you can buy gold in India in a very systematic and planned way.
Recently, the bonds yields in the US rose, after Donald Trump was elected as the US President. This has pushed gold prices lower to $1222 an ounce from $1282 an ounce.
India gold rates today have also fallen in line with the international gold rates. Gold for 22 karats in India has now dippped to Rs 29,800 per 10 grams from Rs 30,300 per 10 grams until about 1-week ago. It is highly likely that we may continue to see a slight downward pressure on gold prices in the coming months.
Already, gold prices in India in 2017, have seen a good rally, as compared to the last few years. Those who have invested in gold this year, have ended-up making good money. In fact, you can also do some profit booking in gold, as there has been an upsurge in prices.
Karats is used to measure the purity of gold. 24 karats gold, means all the 24 karats of the precious metal comprises of gold. This is the purest form of gold and it cannot get purer then that. In fact, we can consider it as 99.9 per cent pure. On the other hand, 22 karats means that only 22 karats is pure, which also means that 91.67 per cent purity. one also has 18 karats gold, which is only 75 per cent pure, while the rest comprises of other metals. The one method of also mentioning purity is the fineness in the gold, which is a concept used abroad.
Another way of examining the metal is also to look at its colour. 24 karats gold will generally be very bright and alive. 22 karats on the other hand could be slightly less bright and a little more darkish. When other metals are added to gold the colour would also change. For example, white gold has more of nickle as a combination in it.
Physical gold vs gold ETFs vs sovereign gold bonds
There are various options when it comes to investing in gold. You can invest in physical gold, as well as sovereign gold bonds and gold ETFS. The latter has its own difficulties. For example, in physical gold, one would have issues pertaining to storage, while there are no such worries, when you buy gold ETFs.
Sovereign gold bonds are schemes launched by the government of India as an alternative for buying physical gold. Usually, Reserve Bank of India issues these schemes. There are a lot of schemes and we can buy these schemes either in paper form or you can add these schemes in your portfolio. For physical gold bonds you will not get any interest as a lot of investors calls gold as non-yielding bullion. But if you go for a gold bond you will get some interest over the gold you bought which will be fixed by the Reserve Bank of India.
Physical gold also requires storage. The sovereign gold bonds, has its own advantage. For example, you need not worry about theft, while you can also earn an interest rate. All of these instruments track gold prices, which is another big positive.
The gold prices fell in India following trends from the bullion markets on the advancement of dollar value.
The gold rates in India were seen at Rs 47,800 for 10 grams of 22 karats and Rs 52,150 for 10 grams of 24 karats.
On the international platform, spot gold was seen at $1,755 per ounce and U.S. gold futures at $1,764.50 per ounce.
The metal was headed for its first weekly fall in a month after hitting a three-week low during Friday’s trade session. The ornamental metal is facing stiff pressure from the stronger dollar and rising U.S. bond yields. The Fed’s stance to hike interest rates further to ease the inflation rates has bolstered the dollar value to surge.
Dragged by the dollar’s renewed ascent to touch a one-month peak and a steady rise in the benchmark U.S. 10-year Treasury yields, prices to zero-yield, the greenback-priced metal slipped 2.9% during the week, the most since early July.
Few of the officials of the Fed noted yesterday, that the central bank needs to hike the interest rates to cool down inflation rates which have touched sky-high levels.
Ahead of the meeting of the Fed, the traders will be heavily focused on the annual Jackson Hole economic symposium, inflation and jobs data.
St. Louis Fed President – James Bullard noted that he was currently leaning towards supporting a third straight 75-basis point rate hike next month.19 August 2022
The gold prices are stable in India despite surging up in the bullion markets as a pullback in the U.S. dollar and Treasury yields support gold. The U.S. Federal Reserve’s minutes hinted that the policymakers may be less aggressive on future interest rate hikes. The gold rates in India were seen at Rs 47,900 for 10 grams of 22 karats and Rs 52,250 for 10 grams of 24 karats.
In the international scenario, spot gold was seen at $1,769 per ounce and U.S. gold futures at $1,780 per ounce.
The prices of the precious metal surged up today as the dollar and the Treasury yields pulled back slightly after the U.S. Federal Reserve’s minutes hinted policymakers are more likely to be less aggressive on future interest rate hikes.
Gold and the dollar share an inverse relationship, the drop in the U.S. currency by 0.1% against its rivals has made gold less expensive for buyers holding other countries' currencies.
In its upcoming July meeting, the Fed officials noted the future increase in the interest rates. The pace of the future interest rate hikes depends on the incoming economic data, as well as the assessments of how the economy was adapting fr higher rates already approved.
Yesterday’s released data shows that U.S. retail sales were unexpectedly unchanged in July as the drop in gasoline prices has weighed on receipts at service stations. But the customer spending appeared to have picked up at the start of the third quarter.18 August 2022
The gold prices fell in India as the metal struggled for direction with Fed minutes. The gold rates in India were seen at Rs 47,900 for 10 grams of 22 karats and Rs 52,250 for 10 grams of 24 karats.
In the international scenario, spot gold stood at $1,771 per ounce and U.S. gold futures at $1,784 per ounce.
The metal prices slid marginally during Wednesday’s trade sessions, with gains curbed by a firmer U.S. currency. Investors are bracing up for any guidance on the future of the U.S. interest rate hikes from the minutes of the Fed Reserve’s latest policy meeting.
The ornamental metal is struggling to find a clear direction and hence the Fed’s minutes could represent a significant market driver, with the central bank’s annual Jackson Hole Symposium getting closer, noted an analyst.
The U.S. Central bank has hiked its benchmark rates overnight interest rates by 225 basis points on an all since March 2022 till date to tame the inflation rates.
Traders are pricing in a 50 or 75 basis point rate hike at its upcoming September meeting. The recent hawkish remarks from Fed policymakers have led to a pullback in the prices of the ornamental metal from the key $1,800 levels, despite signs of easing inflation rates.
The rising U.S. interest rates have hiked the opportunity cost of holding non-yielding bullion.17 August 2022
The gold prices dropped in India following cues from the bullion markets amidst the strong dollar. The gold value in India was recorded at Rs 48,000 for 10 grams of 22 karats and Rs 52,360 for 10 grams of 24 karats.
In the international scenario, spot gold traded at $1,779 per ounce and U.S. gold futures at $1,790 per ounce.
A disappointing set of economic data from China and a surprise interest rate cut by the country's central bank have helped the U.S. dollar to surge during today’s trade session.
With the rally of the U.S. dollar, gold prices have extended losses. Usually, a stronger dollar will make gold costlier for overseas buyers.
Analysts note that amidst ongoing uncertainty over the markets, investors are finding a comfort zone in the U.S. dollar, in a dynamic which penalizes the precious metal due to the inverted price correlation between the two.
If in case, the minutes of FOMC on Wednesday provide signs of further hawkishness, then it could further enhance the appeal of the U.S. dollar, in such a scenario, it will be penalized for the metal.
So far, the Fed officials have maintained a hawkish stance on the interest rate hike and hinted at more interest rate hikes for the year to bring down inflation rates. The surge in the interest rates tends to weigh on bullion, which does not yield any interest.16 August 2022
The gold prices gained in India following trends from the bullion markets. The gold rates in India were seen at Rs 48,150 for 10 grams of 22 karats and Rs 52,530 for 10 grams of 24 karats.
In the international scenario, spot gold stood at $1,806 per ounce and U.S. gold futures at $1,817 per ounce.
The prices of the precious metal drifted higher on Friday’s trade session as it was helped by a fall in the U.S. Treasury yields and setting the metal on course for recording its fourth straight week of gains. Investors, on the other hand, took stock of the recent inflation data released from the U.S.
The U.S. Treasury yields declined after witnessing a volatile week as investors are evaluating whether an apparent slowdown in the inflation increases could reduce the Fed from hiking interest rates. The data released earlier this week indicates that the inflation levels in America have eased, following which market participants toned down expectations of an aggressive interest rate hike by the Fed.
Yet, the recent Fed commentary continues to be hawkish, which has stopped the precious metal from breaking above the $1,800 level.
Gold, the safe-haven asset continues to do well in a low-interest environment as it does not fetch any interest rates.
The surge in domestic prices has restrained the physical gold demand in India during the week. Apart from this, the uncertainty surrounding tensions between China and Taiwan following Ms Nancy Pelosi’s visit to the island nation has prompted bullion importers in China to hold off on big purchases.13 August 2022
The gold prices jumped in India following cues from the bullion markets. The gold rates in India were seen at Rs 47,750 for 10 grams of 22 karats and Rs 52,090 for 10 grams of 24 karats.
In the international scenario, spot gold traded at $1,804 per ounce and U.S. gold futures at $1,811.60 per ounce.
The metal rose in the bullion markets during Friday’s trade session and it was on track to record its weekly rise. The overall weakness in the U.S. currency has helped the metal to surge up.
The U.S. dollar edged 0.54% high today but was down by about 1% for the week. Usually, a weaker greenback will make the bullion less costly for overseas purchasers.
Analysts note that easing inflation rates has helped the metal to rally and cross the $1,800 levels. But riskier assets were quickly preferred and hence there was a stall in the rally of the precious metal. If in case, the appetite for risk fades over the next few weeks, then the rally may continue and grow beyond $1,800 levels.
Meanwhile, the market participants have toned down expectations of an aggressive interest rate hike by the U.S. Federal Reserve after hiking interest rates three consecutive times by 75 basis points. The cooler-than-expected inflation data released earlier this week may change the course of an interest rate hike from the Fed. But, the recent comments from a few Fed officials, continue to highlight a hawkish stance.12 August 2022
The gold prices are consistent in India following cues from the bullion markets as the hawkish stance by the U.S. Federal Reserve officials points to signs of peaking inflation rates. The gold rates in India were seen at Rs 47,350 for 10 grams of 22 karats and Rs 51,650 for 10 grams of 24 karats.
On the international platform, spot gold was trading at $1,796 per ounce and U.S. gold futures at $1,806.7 per barrel.
The prices of the yellow metal eased on Thursday’s trade session as it slid from the last session’s one-month peak. The dollar index weakened and made bullion more appealing to overseas investors. The July CPI data came in softer than expectations, leading the markets to reposition in hopes that the inflation rates were at a peak.
However, the policymakers of the Fed noted that they will continue to tighten monetary policy until price pressures were fully broken.
The ornamental metal is considered a hedge against inflation and uncertainties in the political and economic situation. Yet the rising U.S. interest rates by the central bank will hike the opportunity cost of holding the non-yielding bullion.
Independent analyst, Ross Norman notes, that the metal has struggled to make significant headway despite the correction in the U.S. dollar index and 10-year U.S. Treasury bond yields.
The dollar index, a measure of the U.S. dollar against a host of rival currencies weakened and made the metal more appealing to overseas buyers.11 August 2022
The gold prices dropped in India despite a surge in the bullion markets as investors await U.S. inflation data. The gold rates in India are seen at Rs 47,350 for 10 grams of 22 karats and Rs 51,650 for 10 grams of 24 karats.
In the international scenario, spot gold stood at $1,797 per ounce and U.S. gold futures at $1,822 per ounce.
The prices of the precious metal surged up and broke the benchmark $1,800 levels during Wednesday’s trade session after relatively taming U.S. inflation readings prompted bets that the U.S. Central Bank may not opt for aggressive interest rate hikes.
The U.S. Fed has taken an aggressive stance on the interest rate hike to ease inflation rates. The sky-rocketing inflation rates forced many central banks across the globe to take a tough stance on hiking interest rates.
In July, U.S. consumer prices did not rise, owing to a sharp fall in the cost of gasoline. The move is the first notable sign of relief for American consumers who have watched the surge in inflation over the last two years.
The onset of the pandemic crisis had forced many central banks to roll out monetary plans to keep the economy in equilibrium, thus paving way for inflation to grow.
Usually, gold tends to do well in a low-interest rate environment, as the bullion is getting a further fillip from a sharp retreat in the U.S. currency, bolstering its appeal amongst overseas purchasers.
Gold and the dollar share an inverse relationship, the fall in the dollar will uplift the value of the precious metal and vice versa. Yet, the ornamental metal does not fetch any interest from investors.10 August 2022
The gold prices jumped in India in trend with the cues from the bullion markets on the soft dollar. The gold rates in India were recorded at Rs 47,950 for 10 grams of 22 karats and Rs 52,310 for 10 grams of 24 karats.
In the international scenario, spot gold traded at $1,798 per ounce and U.S. gold futures at $1,811.30 per ounce.
The prices of the precious metal surged during today’s trade session owing to a soft dollar. Gold and the dollar share an inverse relationship, the fall in the dollar value will uplift the value of the precious metal and vice versa.
Meanwhile, investors are awaiting the release of the U.S. inflation data to get cues on the Federal Reserve’s policy tightening path.
Usually, a weaker greenback will make gold less expensive for overseas buyers. The dollar index, the measure of the dollar against a basket of rival currencies was down by 0.3%.
The ongoing tensions between Russia and Ukraine and the weak U.S. dollar have benefitted the ornamental metal, while the focus now shifts on the CPI data, due to be released on Wednesday, notes analysts.
A survey by the New York Federal Reserve showed that the U.S. consumer’s expectations for where inflation will be in a year and three years declined sharply in July.9 August 2022
The gold prices traded flat in India despite a surge in the bullion markets following a pullback in the U.S. dollar value and Treasury yields. The gold rates in India were recorded at Rs 47,550 for 10 grams of 22 karats and Rs 51,870 for 10 grams of 24 karats.
In the international forum, spot gold stood at $1,792 per ounce and U.S. gold futures at $1,804.20 per ounce.
The metal rose in the bullion markets amidst a drop in the value of the U.S. dollar and Treasury yields. The dollar index, the measure of the dollar against a host of rival currencies fell by 0.3% and made gold more appealing to buyers of other countries' currencies.
On the other hand, even the U.S. Treasury yields also declined during today’s trade session, helping the precious metal to surge. Gold and dollar share an inverse relationship, the fall in the dollar will help the safe-haven bet to march and vice-versa.
Gold, the yellow metal acts as a safe form of investment during political uncertainty and economic recession fears. But the continued hike in the interest rates by many central governments across the gold has tended to dim the appeal of the bullion, which does not yield any interest.
Meanwhile, the U.S. consumer price index report which is due on Wednesday is likely to throw more light on the clues of the Fed’s next move on the interest rates.8 August 2022
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