Today Gold Rate
Gold Rate Today in India (in Rs/1 gm)
Last Update on 23 Sep 2017, 13:36:57 PM
|Gold Rate||Gold Rate In Bangalore||Gold Rate In Chennai||Gold Rate In Delhi||Gold Rate In Hyderabad||Gold Rate In Kerala||Gold Rate In Mumbai|
Price of Gold in Different Cities
Gold Price in India
Over the ages, Gold has occupied a predominant place in human life. It symbolises wealth, power and prosperity. It is precious and it has fascinated many cultures to lead towards progressive development. Gold has a significant importance in our lives. It is being used almost all the major civilisations in the world.
At the same time, gold is bought as ornaments to enhance the beauty of a bride, and it is indeed a wise decision to invest in gold. The moment you decide to invest in this prized asset, you should keep your eyes and ears open, as gold rate today tends to fluctuate depending on the market condition. The handy nature has increased the demand for gold over the period. Again, the supply is also stable and the flexibility and trust that gold owns cannot be possessed by other metal. Hence, it has been a perfect hedge against inflation since ages. Gold rate in India always creates curiosity among the common masses. Hence, to deal with the uncertainty, here are some startling facts about gold rate that you might not be aware of!
22 & 24 Carat Gold Rate in India for Last 10 Days
|23 September 2017||Rs. 2860.00||Rs. 28600||Rs. 3058.82||Rs. 30588.2|
|22 September 2017||Rs. 2855.00||Rs. 28550||Rs. 3053.48||Rs. 30534.8|
|21 September 2017||Rs. 2855.00||Rs. 28550||Rs. 3053.48||Rs. 30534.8|
|20 September 2017||Rs. 2680.00||Rs. 26800||Rs. 2866.31||Rs. 28663.1|
|19 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
|18 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
|17 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
|16 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
|15 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
|14 September 2017||Rs. 2885.00||Rs. 28850||Rs. 3085.56||Rs. 30855.6|
Comparison of 22 K & 24 K Gold Rates in India
Trend of Gold Rate in india for Aug 2017 (rates per gram for 24 carat gold)
|Aug 1st Rate||Rs. 2957.22/- per gram|
|Aug 31st Rate||Rs. 3053.48/- per gram|
|Highest Aug Rate||Rs. 3053.48/- per gram|
|Lowest Aug Rate||Rs. 2930.48/- per gram|
|Percentage Change||3.15 %|
The Glittering Gold of India
India's Inclination towards Gold
India has a long standing affinity to gold. It is the metal of the gods, and gods of the metals! It is the indication of the long lasting and evergreen heritage of this traditional country. Anything made of gold is regarded infinitely precious and commands respect.
The heavier the gold, the more prestigious a post you automatically escalate to. Most of the women in India prefer gold to diamonds, and the gold market in India is always loaded with fresh and vivid designs.
Buying Gold in India
Buying gold in India is pretty easy in the sense you can genuine gold jewellery shops almost everywhere. From large franchise to smaller shops, gold is everywhere here. You get the standard 22 carats gold, the intermediate 23 carats gold as well as the pure 24 carats gold in this golden country.
What Do You Buy?
This is entirely your choice. Gold rings, earrings and necklaces, there is plethora of options available. From heavy and gorgeous ones to light and simple ones, you can buy anything made of gold, if you budget allows you to do so.
The Common Factors That Determine Gold Prices in India
For ages, the Indian population has had a fascination for gold. It is the most cherished metal, and it is flaunted in the form of jewellery at every occasion. The gold rate today in India is not standard. The gold price fluctuates based on the markets.
There are several factors that influence the gold price today in India.
Global Changes in Gold Prices
The price of gold in India is predominantly dependent on the global prices of the metal. Most of the gold in the Indian markets in imported. When there is a change in the global rate of gold, the import values are altered accordingly. The market price of gold in India is a direct reflection of the import prices.
The Gold Reserve Measure
Almost all nations have their central banks. These governing banks of major countries hold back the metal along with currencies for future use. The Reserve Bank does this too. When these banks all over the world acquire more gold for reservation, it leads to a rise in the rate of gold.
An Overall Demand
There are specific reasons for a rise in consumer demand for gold. In India, it is the wedding season or festivities. When the demand is more, there is an imbalance in the demand-supply ratio. This leads to a rise in the gold prices.
Apart from the above-mentioned reasons several other determinants influence the gold rate in India. At any given point of time, the current gold rate will also depend on the interest rates of certain financial services and products. No matter the price, the yellow metal has remained precious over the years and will continue that way irrespective of the oscillating prices.
How is Hallmarked Today Gold Rate Determined in India?
There isn’t any difference between hallmarked gold rate today and normal gold rate. Any gold seller doesn’t charge extra money if you buy hallmarked gold. The rate at which the hallmarked gold and the normal gold are sold is the same. The sole and most important difference is that you are ensured of purity when you buy hallmarked gold.
The important thing to keep in mind is that hallmarked gold price in India does not differ when it comes to the pricing. The difference lies in the quality of the metal used. When you buy gold, buy good quality gold. It is good to buy the hallmarked gold as it ensures the quality. Many investors have raised their opinions on the less number of hallmarking centres available in our country. This is an important issue that needs to be addressed by our government so that number of hallmarking centres can be increased. This will be of great help to the consumers across India.
How is the per-gram Today Gold Price in India arrived at?
Price of gold in India is determined by the following factors:
- Currency - When the rupee slips against the dollar, India gold rate rises up.
- International factors - These factors include slowdown of the global economic development, volatile policies, dollar becoming stronger against different currencies etc.
- Global demand for gold - Global demand for gold plays a crucial role in determining the price of gold in India. In case the demand is robust, the prices would rise and vice-versa.
- Interest rates - The rate of interest is a crucial factor that affects the gold rates in India. When the rate of interest in countries such as America increases, current gold rate in India falls and when it falls, the gold rates increase.
- Government policies - There are times when the government discourages the purchase of gold. For instance- when the gold prices are high, the government discourages any investments in gold. It is done in order to make sure that there isn’t any problem with the deficit.
- Prices - High gold rates discourage the consumption in our country. Off late, the price of gold in India has increased.
How is 22-Karat Gold Price in India Determined and Who Imports it?
Now, India doesn’t mine gold. Places such as Kolar in Karnataka once used to be gold mines and now are closed. India imports approximately all of its required gold requirements. The imported gold rate is used to determine the 22-karat gold rate in India. Gold importers, such as government banks, private banks, and many private companies etc. fix the wholesale gold prices in India.
When gold is imported in India, the importers add import duties, VAT etc., and then they sell it to the wholesalers, who retail it to the retailers across India. The price of gold is decided by the bullion association. Gold prices don’t change often during the day.
Impacts of QE on Gold Price Today in India
Quantitative easing is widely known as QE. It is another component that impacts gold rates in India. In quantitative easing, there is money supply in the economy for enhancing the consumption. Global central banks buy securities which lead to the extra money supply in the economy. This extra money supply finds a way into global gold investments, which pushes the prices of the metal higher.
An increase in the QE affects the gold rate today in India, which affects all the form of gold inclusive of the popular 916 gold rates in India. Off late, QE happening around the world is not that much. The US is done with its QE phase and there is some kind of easing happening in the countries such as Japan along with the Europe through the various central banks.
At present, it seems very unlikely there will be QE in that country. When the world economy will face any liquidity issues, gold rates could fall in the trade. Along with QE, there are some other components that lead to gold rallying. The withdrawal of QE will bring a fall in the gold prices. The US is now winding down its QE; there could be chances that gold rates in India could be impacted.
Demand for Gold in India Goes Up 15% in 2017
The demand for gold in India has increased by 15% in the initial quarter of the financial year to 123.5 tonnes, leaving a sign of hope for positive return. If we compared with the last year, the total gold demand stood for 107.3 tonnes, owing to the jewellers' strike over excise duty introduction. As per World Gold Council estimation, gold demand increased by 18% in the first quarter to Rs. 32, 420 crore, which was just Rs 27,540 crore in Q1 2016. Here’s a sneak peek on how the demand changes over time:
Demand for Gold
16% rise at 92.3 tonnes
Value of jewellery demand
24, 220 crore with 18% hike
Value term gold investment demand
8,200 crore, 16% hike
Went up by 3% to 14.5 tonnes
Imports during January-March 2017
Rose by 112% to 270.1 tonnes
Why is India a Good Option to Invest in Gold?
If you are keen to invest in gold, you’ll get a plethora of investment options in India. But before investing in gold, you need to be clear about certain things such as why you are investing, the tax liability, the other investment options and everything that you aspire to know about gold. Gold trading has picked the pace within a short span of time by offering favourite investment avenues in India. Though Indian gold market witnessed a stagger in the initial phase of this year regarding Indian Gold Rate, the stalwarts say this is a transitory phase that will pass by soon.
Here are various gold options you can avail in India to invest for good returns:
Jewellery: Buying jewellery every now and then is just like a tradition. In India, some rituals urge to wear or buy jewellery. This way you can invest in gold and can keep it for future use. However, one disadvantage associated with this is that the making charge is included in the buying cost and at the time of selling it, you might get the lesser amount or have to compromise on the making charge if you sell it to the same jeweller from whom you bought it. Because there is no guarantee that the gold price today will remain the same the very next day.
Gold Coin & Bars: Investing in gold coins and bars is trending these days. But be careful while buying. You should only prefer buying it from jewellers or authorised banks. The only difference is that banks sell gold coins and bar but they cannot buy it again. Jewellers, on the other hand, sell the gold and can buy it back from you as well.
Gold ETF: ETF stands for Gold Exchanged Traded Fund, a type of mutual fund which invests in gold and its units are being listed on the stock exchange. If you are seeking to invest in ETF in India, you need to purchase it from the stock exchange by simply opening a demat and trading account. The brokerage fee will be borne by you at the applicable ROI. Further, you need to pay the fund management charge as per the stock exchange norms.
Gold Mutual Fund: Gold Mutual Funds invest in gold ETFs on your behalf. You can invest here just like you invest in other mutual fund schemes. Also, SIP investment is probable in gold mutual funds. But keep this mind:
- You’ll have to pay annual management charges for Gold ETF
- Annual management charges to be paid for FOD Scheme
22 Karat and 24 Karat Gold: Know the Difference
The purity of Gold is measured through a unit called ‘Karat’. There is a belief that higher the karat, purer the gold is. You will get a variety of gold options such as 22 karat, 24 karat, 18 karat. You should be prudent before making any investment especially in case of 22 and 24 karat gold and their difference.
24 Karat Gold
22 Karat Gold
It has no trace of other metal
Marketable in jewellery or decorative form
Known as 99.95 pure gold
Not 100% pure gold, up to 92% is pure gold and remaining part is preservative metals such as zinc, silver or other metals.
Slightly expensive than the other
It is cheaper than 24 karat gold with less weight
It offers guaranteed resell globally due to liquidity of gold and extreme demand
The colour of gold is changeable by mixing other metals like alloy
Gold colour is pure yellow and untainted
It cannot be used directly in making ornaments or jewellery
Though it is best for jewellery making but not recommended for diamond or gemstone studded jewellery.
Not bendable in its original and pure form
It can be easily shaped into jewellery.
Despite the differences, they both are considered as the pure form of gold due to the percentage they offer. However, if you are in quest of investing in gold bars, 24-karat gold makes more sense owing to its robust and resell benefit.
Factors Influencing Gold Price in India
Gold price is not steady. Today gold rate may vary from yesterday owing to a few factors that have an extensive influence on rise or decrease of gold rate in India. Let’s look at a few of them. Here we go:
Influence of Inflation Rate
Due to its steady nature, the investors prefer to use gold over currency. It results in an increase of the demand for gold when inflation is high. The price of gold also tends to shoot up with the increasing demand for gold among the investors and customers.
The global movement may affect the today gold price in India. India being the largest importer, gold is being imported today from each part of the world. Hence, when import rates change owing to a global movement, some it holds a significant impact on gold price in India. Since any political disturbance may influence the value of currency or financial products, gold is considered as a safe sanctuary by the investors. It is often noticed that an interest for purchasing gold increases during a political crisis than a normal time. This situation is called as ‘Crisis Commodity’ as customers tend to buy more gold, trailing the confidence in the government and the market.
Government Gold Reserves
Central banks, in most cases, have the right for gold reservation. Reserve Bank of India is one such institution which can hold a gold reserve. When central banks do so or procuring gold in excess, the today gold rate goes up. It is due to the rise in the flow of cash in the market but the supply goes down.
Jewellery has always been placed in a special category in India, mostly among the women. And when it comes in the form of gold, it is icing on the cake. Be it a wedding, festivals, birthdays, wearing gold jewellery is kind of a fashion here that has been followed since ages. There are festivals when the gold price goes up like Diwali due to the increasing demand for gold, and when demand and supply are unable to balance each other out, it results in rising gold rates. Again the demand doesn’t end here. Even in electronic items like TV, computers, GPS etc. it has been used in small quantity. In India, gold is a medium of showing off your status, as a gifting element, which by any means increase its demand day by day.
Interest rate trends
Interests rates imposed on financial products and services also affect the gold rate. If interest rate increases, customers seek to sell gold to obtain cash and on the other hand, a rise in the supply of gold leads to the reduced price of gold and vice-versa.
GST Imposed on 24 Karat Gold
Gold rates have slightly gone up as 3% of Goods and Services Tax (GST) is being imposed on gold jewellery. Before GST, gold jewellers used to pay 1.5 excise duty, 1.2% VAT and 10% as customs duty on the gold purchase, which comes around 12.43% tax. After 3% GST came into practice, the jewellers are now paying 10% for import duty, 18% tax for making charges, which was zero before GST. And this effectively comes to 15.67%. However, with the constant protest of Indian Jewellery Council, the government later fixed the tax on making charges at 5%. The buyers now also have to pay an extra 3.24% tax as per GST rule while buying Gold jewellery.
How Gold Prices Move in India and Globally?
There are a few components, which play a crucial role in affecting the India gold rate in a positive or negative way. Here are the 5 reasons why gold rate today is different as compared to 10 years ago.
- Demand/Supply - Demand is a sole reason why the rate of any good including gold changes every day on a regular basis. When the supply of gold is constant and its demand increases during the festive/marriage season, the gold price increases.
- Global Production - On an average, the global gold production is approx. 2,500 tonnes during any given year as compared to the total gold circulation across the globe which is approx. 165,000 metric tonnes. The applicable gold price is affected by the production cost of the additional gold.
- Industrial Uses and Jewellery - The combination of the different features make gold a perfect choice for various industrial usages. As the consumption of these industrial products increases, the demand for gold also increases. In India, 50 percent of the gold demand arises from the jewellery sector. During the festive season, the demand for gold increases that leads price increases.
- Central Bank Controls - The gold reserves at the central bank ensure that the deficit financing doesn’t devaluate the currency so that hyperinflation is kept at bay.
- Economic Instability - In our world, no economy is self-sufficient and each country depends on another country for some kind of goods or services. In these situations, the key player in the world economy is the US Federal Reserve and each country has its own central bank. When these central banks introduce any measures which are considered as erratic then, many investors go for safer options such as gold instead of paper currency so that they have some tangible security. This leads to increase in the gold rates.
What are the Various Gold Options Available to Buyers?
Physical gold is available in 24 karats, which is considered as the purest form of gold. The 22 karat is the jewellery grade gold and 18 karat is less precious.
Here are the common formats for buying gold.
- Jewellery (with/without precious gems/stones) - It comes with purity issues, safe keeping issues along with the manufacturing charges. Gold rate is different from the exchange traded price.
- Gold Coins - They can be of historic nature if they are collected from any archaeological digs. The coins minted under the Central Bank guarantee the purity which is available in different denominations from 2 grams-50 grams.
- Gold Bars - Minted by RBI at designated mints, these are guaranteed to be pure and these are available through the selected banking institutions only.
Gold Trading as a Commodity in India
Commodity trading is a new development in our country and gold has become one of the key commodities that is being traded in the commodity exchanges of India. One can go for gold trading through the 3 dedicated commodities exchanges:
- Multi Commodity Exchange of India Ltd.
- National Multi Commodity Exchange of India Ltd.
- National Commodity and Derivative Exchange
These three exchanges are present across the country and they offer electronic trading or settlement systems. These exchanges are governed by the Forward Markets Commission.
Gold Futures Contracts on MCX
MCX India deals in the future trade of gold along with a wide range of different commodities. At present, MCX offers various gold future contracts alternative for the investors looking forward to an investment:
- Gold - It has a trading unit of 1 kilogram and the maximum order size is 10 kilograms. The highest permissible open position for a person is higher of 5 metric tonnes for all the gold contracts coupled together or 5 percent of the market wide open position.
- Gold mini - It has a trading unit of 100 grams and a maximum order size is 10 kilograms. The maximum permissible open position for a person and for a member dealing collectively with all the clients is same as that for Gold Futures Contracts.
- Gold guinea - Every gold guinea contract constitutes of a smaller amount of 8 grams and it is targeted at people with a small capital base. Starting from a low amount, the maximum permissible open position is at metric tonne for all the gold contracts clubbed together or 5 percent of the market wide open position for the individual customers.
- Gold petal - It involves only 1 gram of gold per unit as it is designed specifically for the small investors. The maximum permissible open position is same as the above contracts. One can buy up to 20,00,000 Gold Petal Contracts.
- Gold global - It’s a contract based on the international price that designed particularly for the requirements of exporters, jewellers, refiners, and larger bullion market participants. It is a new product from MCX which was launched in July 2015.
How to Sell Gold in India?
Before you sell your gold, you need to keep a few pointers in your mind so that you get best of the best deal.
- Retain invoice: In order to be eligible to sell your gold to a reputed jeweller and getting the maximum value from your investment, you must keep the original invoice with you.
- Get it evaluated: Before you sell your gold, make sure you get its value checked twice or thrice so that nobody can cheat you.
- Check the purity of gold: Before you sell your gold, it’s important that you get it hallmarked. In case your jewellery isn’t hallmarked then get its purity checked.
- Pick a trusted shop: Make sure that you sell your jewellery to a reputed store so that you get a fair price.
How to Check Purity of Gold
There are multiple ways to check the purity of gold.
Look for the Hallmark Stamp: Pure gold always carries a stamp. Reputed stores stamp the jewellery with purity scale. To check the purity of your gold, simply place it under the magnifying glass and check for the hallmark stamp.
BIS Standard Mark: BIS is used as a benchmark stamp for the purity of gold. Every legal jewellery item will carry this stamp on it.
If there is Any Discolouration: You can check the purity of your gold by noticing any discolouration or not. If your piece is only gold plated, it will start showing a different metal under it and colour will be faded.
Try with a Magnet: We are aware the fact that gold is non-magnetic. So, if it pulls towards the magnet, it’s not real. However, it never shows 100% result, as sometimes non-magnetic metals are used with pure gold as well. To perform this test you will require a strong magnet that you may find in a hardware store or in regular things such as purse latches, old unused hard drive or children’s toys.
Q1. Why gold rates differ in several states in India?
A. Gold rates are determined by international gold rates and ideally, it should be the same across the country. But it is not the case. You find a different rate for gold in Mumbai than Chennai or Delhi. There are certain variables that determine gold rates for each state in India. The list includes:
Hauling Expense: As an expensive item, the transportation cost of gold is slightly expensive owing to the safety reason. This cost is added to the main selling cost, which may vary from state to state.
Gold Association: Every jeweller belongs to a defined Gold Association which regulates all terms and conditions related to gold. For instance, Mumbai gold price is decided by ‘Mumbai Bullion Association Ltd’. Likewise, in Chennai, all jewellers are the members of ‘Madras Jewellers and Diamonds Merchant’s Association’, which decides gold rates.
Import Duty Imposed by the State Government: Our government plays a vital role in determining the gold price. The govt. of India not only imposes tax rates but also the import duty rates. India doesn’t directly mine gold and imports from different countries, where the import rates, which is based on the deficit, plays an important role in fixing of retail segment rates. If there is a shortage or deficit, the import duty rises correspondingly, and vice-versa.
Q2. Is there any difference between Carat and Karat?
A. Carat and Karat both are used to measure, but yes, they are completely different things. Carat is used to measure Diamonds while Karat measures the purity of Gold. One carat is equivalent to 200 milligrams and same as 0.2 grams.
While Karat signifies the purity of gold, you’ll find various jewellery forms referred to as 24-karat, 22-karat, 14-karat or 18-karat gold. It is believed that higher the karat, higher the chances of pure gold.
Q3. How 18K, 22k and 24k Gold is different from each other?
A. All 18k, 24k and 22k gold signify the purity of gold. 18Kgold is 75% pure gold and 25% is alloyed with other metals like silver or copper. 18k gold is being used in studded or diamond jewellery. It is less expensive than 22k or 24k gold.
22K gold is mostly used in jewellery making. It is 91.67% is pure gold and remaining percentage is a combination of metals like nickel, zinc or other alloys. Jewellery made of this gold is durable as the mixture of other metals makes the texture of gold harder.
24K is the purest gold hence it is 100% gold. It is 99.9% pure and doesn’t blend with any other metal. Owing to its purity, this gold is expensive than the rest. However, it is lower in density.
Q4. Why we worship this yellow metal called ‘Gold’
A. We guess below points are enough to justify its value:
- Its natural beauty and colour attract most of the people
- It is easier to make jewellery or ornaments out of it
- It is non-allergic. If you have a gold piece touching your body all the time like a gold chain or earring- there will be no reaction, unlike other metals. Even wearing gold has its own health benefits.
- In the ancient times, it was considered as rare metal and so precious.
- It is less affected by climate. You may notice many temples in India, the rooftops are made with gold like Gurudwara Bangla Sahib in Delhi, Famous Shiva Temple in Sivasagar dist. of Assam and so on.
- In ancient times, making coins out of gold was easier. Gradually people started using other metals and found gold more reliable and valuable than the rest.
- Gold is a dense, shiny, ductile and malleable metal.
Q5. How much is one tola gold?
A: Tola is an ancient Indian unit to weight gold. 1 tola stands for 11.66 grams.
Q6. How is gold brought into India?
A. India has very small gold reserves and it is dependent totally on the commodities market across the globe to meet the demand for gold. The country’s central bank is responsible for the gold import and dividing it among the distributors so that it could be supplied to a large number of retailers or jewellery shops.
Q7. Why gold always retains its value?
A. Gold will retain its value in the future as it is the ultimate form of money. Irrespective of innumerable social, economic as well as political changes, individuals have valued gold since the civilization began.
The value of gold hasn’t been zero and it hasn’t defrauded any investor ever. Human civilization acknowledges the value of gold since history has proven that it has zero risks.
Q8. How to buy gold bullion?
A. Gold bullion, gold in the form of bars and coins can be purchased by any investor in India at jewellery shops and selected banks. For 24 karat gold bars, the denomination varies from 5 grams to 100 grams and these come with a purity certificate.
The high investment volume and limited availability make the gold bars the most preferred choice for the investors. Although, gold bars aren’t accepted by NBFCs and banks as gold loan’s security.
Gold Coins - These are more accessible and more common for the public. The purchase denomination varies from 2 grams to 50 grams for 24 karat gold coins. The traditional purchasing point for gold coins is jewellery shops and banks. Off late, people are buying gold coins online in India.
Online portals like Snapdeal, FINCO India, and PN Gadgil, offer 24 karat BIS hallmark gold coins for online purchase. Various Indian banks offer gold loan using 24 karat gold coins up to 50 grams as collateral.
Contracts - These alternatives give people a delayed access to the bullion. Spot contracts as well as future contracts are available from MCX, Bullion India, NCEDX, and RSBL. The spot contracts are subjected to the market risks and they’re delivered on an immediate basis. The future contracts come with the protection against various market risks but it comes with a delay in deliveries.
Q9. How much is an ounce of gold worth today?
A. An ounce is known as a troy ounce. It is a royal measure of gold which is equivalent to 31.1035 gms of gold. Since the gold rates change on a daily basis and it varies from one place to the other, the rate of an ounce of gold varies accordingly.
For instance, if the gold price for today is Rupees 3,000 per gram, then, an ounce of gold will be worth Rupees 3,000 multiplied by 31.1035 which is Rs. 93,310.50. Although an ounce of gold’s worth can be slightly different, it will be dependent on the changes in the price of gold.
Latest Gold News
Dollar Recovery Shoves Gold Down from One-year High
The gold rate cut down on Monday, after reaching its zenith in over a year, in the last session, as a result of the fast recovery of dollar rates in last week.
It was reported that the gold rate was down 0.7% at 1,337 USD, an ounce by 0053 GMT. It ascended to 1,357.54 on September 8, 2017. It is the highest gold rate since August last year.
Mark To, research head, Hong Kong's Wing Fung Financial Group, said that the major determinates of gold rate last week were the ongoing geopolitical tension. However, no crisis triggering event was noticed and there were fewer chances for the rise in gold prices.
The US dollar, on Monday, won an official pardon from risk aversion, after North Korean dictator Kim Jong Un made a decision to have a party that weekend rather launching another missile. In his recent speech, Mark To said that he has planner to go long on the dollar for a week or more but not for too long. The reason he mentioned was the major determinates, whereas the tensions related to geopolitical tensions are there. He also mentioned that slowing of the hike in interest rate and other reduction measures are going to be with them as well.
Gold Rate in India Slips Due to Dollar Bounces Back
Gold price in India has a significant impact on the gold market and it tends to fluctuate rapidly. As per the recent report, gold rate in India is set to witness a fall owing to a firm Dollar. As Dollar increased after a positive US economic data, it has contributed to a fall in gold price in India by 0.4% and traded around 1,302 USD per ounce. As we already know, the foreign markets have a momentous influence on Indian gold price and since August last year, dollar went up by 0.3Y to 111.615, which was the strongest.
The recent meet between USA, North Korea and Central Bank on gold ended on a negative note. However, despite this negative sign, gold rate this month is quite at a higher side. The latest gold price indicates that this time gold prices are trading at 29,000 and this is an elevated rate as compared to the regular gold rate in India.