Indian Gold Rates Down Marginally Before Diwali, On Oct 21, IBJA Keeps Prices Controlled To Increase Demand

Gold prices in India again dropped marginally today, although the prices in the international markets gained. Indian gold rates dropped by Rs. 20, today on October 21. So, 22 carat gold rates are quoted at Rs. 46,470/10 grams and 24 carat gold rates are quoted at Rs. 47,470/10 grams.

However, the Comex gold futures today gained by 0.08% and were quoted at $1786.4, while the spot gold prices hiked by 0.21% and were quoted at $1787.00/oz till 2.44 PM IST. On the other hand, the US dollar index in the spot market also gained marginally by 0.03% and stood at 93.64 at the same time. In India, the Mumbai MCX gold in October future gained only by 0.01% today till 2.44 PM IST and was quoted at Rs. 47,505/10 grams.

Recently, the World Gold Council (WGC) has published a report on Indian gold demand that has mentioned that the demand for the precious metal has fallen lastly. However, the demand for gold jewelleries has again started to rally, and to keep up the pace intact, the Indian Bullion Jewellers Association (IBJA) is trying to keep the gold rates moderate.

WGC in its report mentions, "Econometric analysis shows that rising income is the most powerful driver of Indian gold demand in the long term. This bodes well for gold demand as the economy is set to benefit from a demographic dividend: the IMF forecasts per capita GDP growth of 23% between 2022 and 2026.1 But while India is the second-largest consumer of gold, its per capita consumption is low. And demand faces challenges in the short term: from declining household savings rate and agricultural wages." At present, the Indian economy is still under pressure and the per capita income is not quite good. For the common people, it will be tough to buy gold at high rates. So, to increase gold demands before Diwali, IBJA is trying to keep the rates moderate. Although in some major cities, the gold rates have gained marginally.

Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow: