Gold prices are the cheapest in these Indian Cities

India has emerged as world's second biggest gold consumer after neighboring country China. A major portion of India's import is mainly driven by the jewellery industry. According to official data, the gems and jewellery export surged by up to 50% in 2021-22 to USD 39 billion. The imports for gold were recorded at USD 34.62 billion in 2021-21 FY. The yellow metal imports in volume recorded at 842.28 tonnes in 2021-22.

1. Demand for gold to grow in 2023

Demand for gold is likely to register a growth of 11% for the 2023 financial year. There is a surge of 40% in the demand for the yellow metal than 2020 financial year. The key factors that played an important role in pushing gold's demand include the weddings and festival seasons in India. There is surge in the jewellery demand and organized players have re-launched their expansion plans for the current financial year.

2. Gold prices remain volatile

Today the prices of gold witnessed a decline as global prices fell to their lowest level in nearly two-weeks as robust dollar makes gold costlier for buyers holding other currencies. The prices of gold were recorded at 51, 125 per 10 gram today with a fall of Rs 423 per 10 gm. The precious metal has turned volatile for the last few months. When the Ukraine war and corona wave eased, investment in gold began to fall. Investors reduced investment in gold and increased other investment. As the prices of US Dollar appreciates, the prices of yellow metal will see a further dip. Investors continue to brace for an increase in the extent of hawkish stance to be decided by Federal Reserve in June.

3. Factors that affect gold prices in India

There are several factors in India that unleash their impact on the prices of gold. These factors may include demand, festival seasons, wedding seasons, taxes, inflation, interest rates, government policies, and global factors, among others. Demand plays a key role in determining the gold rates in India. If demand is sluggish, price will decline. There is a direct relationship between gold prices and demand. Higher the demand higher the prices, lower the demand lower the prices.

4. What are the various ways to invest in the yellow metal?

You can invest in several ways in the precious metal. When you explore, you will find that you can invest in gold jewellery, Gold ETFs, digital gold and gold mutual funds, among others. It is worth mentioning that you will require to shell out GST payment of 3% on gold.

5. Who imports gold in India?

There are many leading government owned banks, private banks, and private companies that import gold. There is surge in the number of private companies importing gold in India in the last few years.

6. Cities offering cheapest gold prices

Cities offering cheapest gold prices: The price of gold varies from one state to another. It is not necessary that two states will offer the same gold prices. Below is the list of states offering cheapest gold prices (prices taken as on June 1, 2022):

City	22 Carat Gold	24 Carat Gold
Coimbatore	Rs 47,400	Rs 51,710
Chennai	Rs 47,400	Rs 51,750
Kerala	Rs 47,500	Rs 51,820
Kolkata	Rs 47,500	Rs 51,820
Hyderabad	Rs 47,500	Rs 51,820
Mumbai	Rs 47,500	Rs 51,820
Delhi	Rs 47,500	Rs 51,820
Vadodra	Rs 47,550	Rs 51,870
Ahemadabad	Rs 47,560	Rs 51,880
Japur	Rs 47,650	Rs 51,970
Lucknow	Rs 47,650	Rs 51,970