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Gold Rate in IndiaWhy to Buy Gold on Dhanteras
India is the largest consumer of gold in the world, accounting for almost a quarter of the world’s total consumption. It has, since long, maintained this position and, unlike countries like China, India uses gold primarily in the form of jewelry and investments. It is viewed as a solid instrument for investments and even traders who are into commodities trading, invest in gold bullion. These investments are usually dictated by the gold rates prevailing in the economy at that time.
Even the global view of gold is that of a safe haven where you can invest even when investments in the economy of a country are not a good idea. This is because it is believed that this commodity always appreciates.
Trend of Gold Rate in India for October 2016 (rates per gram for 24karat gold)
October '16 - Week 1 (1st to 7th)
- Though the interest rate hike by the U.S. Federal Reserve has put a hold till December, expectations have sprouted again as a further delay in the hike could lead to other problems for the economy.
- Appetite for gold was expected to rise this season in the domestic market, however, jewellers and retailers have not seen a rise in the footfall of customers.
- With domestic demand being mute and global trends being negative, gold prices plummeted to very low rates this week.
- With low rates arriving just in time for Diwali, demand is expected to be high during Dhanteras and Navaratri.
Trend of Gold Rate in India for September 2016 (rates per gram for 24karat gold)
|1st September rate||Rs.3,184 per gram|
|30th September rate||Rs.3,217 per gram|
|Highest rate in September||Rs.3,228 per gram on 7th to 12th September|
|Lowest rate in September||Rs.3,184 per gram on 1st and 2nd September|
September '16 - Week 1 and 2 (1st to 10th)
- Slow U.S. economic data indicated that a interest rate hike by the U.S. Federal Reserve would not be possible this month.
- On account of the Fed rate hike expectations being put to rest for now, buyers swarmed towards the safe haven investment.
- On the domestic front, demand was stable as the festive season is near.
- Overall, the trend for the week was a considerable increase in prices.
September '16 - Week 3 (11th to 17th)
- Gold rates dropped continually this week and is expected to be even more volatile in the coming months.
- The U.S. Federal Reserve is gearing up to introduce an hike in interest rate this month despite weak economic data.
- The safe haven appeal of gold was dampened in the global and domestic markets.
- On the domestic front, demand from consumers, jewellers, stockist and retailers was sluggish.
September '16 - Week 4 (18th to 24th)
- The U.S. Federal Reserve has put a hold on the interest rate hike as the presidential elections are too close. The nearest window for a hike falls in December.
- The mood in the global market was lighter and bullish tendencies were on the rise.
- Gold rates climbed through the week based on positive global trends coupled with a rise in domestic demand.
- Demand in the domestic market is expected to be stable in the coming months as the festive season approaches.
September '16 - Week 5 (25th to 30th)
- Gold rates took a hit this week as the sentiments in the global market turned bearish.
- The dollar gained on the back of the U.S. presidential elections.
- The U.S. Federal Reserve has put off the rate hike for now but the topic is up for discussion in November.
- Demand in the domestic market seemed mute amid the festival season as jewellers and stockist took a step back.
|1st July rate||Rs.3,219 per gram|
|31st July rate||Rs.3,205 per gram|
|Highest rate in July||Rs.3,248 per gram on 10th August|
|Lowest rate in July||Rs.3,206 per gram on 6th to 9th August|
August '16 - Week 1 (1st to 7th)
- Gold prices were on the upswing as the markets fell on poorer than expected U.S. economic growth data.
- Prices were stable with minor fluctuations as the week progressed.
- The positive market outcome after the NFP market release led to gold rates falling as the week ended.
August '16 - Week 2 (8th-14th)
- Week 2 of August was bright for gold as the dollar dropped owing to a sluggish U.S. economy.
- Prospects of an interest rate hike by the U.S. Federal Reserve have significantly dropped.
- Jewellers in the domestic market faced a spike in retail demand as the festive season approaches.
- Gold prices climbed oblivious to overseas trends and the U.S. economy.
August '16 - Week 3 (15th-21st)
- The main focus this week was on the domestic market as the appetite of jewellers and stockists increased in light of the upcoming festive season.
- The U.S. economy has indicated that it’s strong enough to introduce a Federal Reserve interest rate hike this year and that further delays may result in higher inflation and asset bubbles. There was a drop in gold prices in the global market.
- Experts say that the demand for gold will pick up in the second half of 2016 in India with the festivals approaching.
August '16 - Week 4 (22nd-28th)
- Demand from jewellers in the domestic market continued and has helped gold rates stay stable.
- In the global market, the dollar has become stronger. Gold rates dropped drastically amid the anticipation of an interest rate hike from the U.S. Federal Reserve.
- Experts predict better demand for gold in the domestic market in the second half of 2016 as the festive season approaches.
August '16 - Week 5 (29th-31st)
- Gold rates continued to drop as demand for the safe haven metal eroded under the pressure of an interest rate hike by the U.S. Federal Reserve.
- Gold touched 2-month lows amid a gloomy global market as the dollar gained.
- In the domestic market, demand from jewellers and retailers seemed sluggish and muted on account of global trends.
|1st July rate||Rs. 3,167 per gram|
|31st July rate||Rs. 3,219 per gram|
|Highest rate in July||Rs. 3,219 per gram on July 30 and 31|
|Lowest rate in July||Rs. 3,163 per gram on July 22|
July'16 - Week 1 and 2 (1st to 10th)
- After the Brexit vote, some equities and bond yields hit record low rates which contributed to the appeal of gold as a safe haven.
- Gold rates touched a two-year high, reaching prices not seen since July 2014.
- Gold prices rose on the back of expectations of more monetary stimulus from central banks in the near future in order to counteract the negative impact of the Brexit vote.
- This was followed by the U.S. releasing positive job data reports which supported the U.S. dollar that led to the end of gold’s six-day rally.
- By the end of the week, gold rates had either stabilized or decreased across the country.
- Going into the future, the U.S. Federal Reserve is expected to put a hold on increasing interest rates for 2016.
July'16 - Week 3 (11th to 17th)
- Gold prices remained stable, with minor fluctuations from the previous week.
- The fallout from the Brexit vote could still be felt across markets, leading to gold still being the favoured choice for investment.
- Domestic demand was also consistent, leading to rates being stable apart from some minor fluctuations.
- As the week ended, the Dollar recouped some of its previous losses, leading to gold prices stagnating or falling marginally.
July '16 - Week 4 (18th to 24th)
- The global gold market took a hit when the U.S. released strong economic data much to everyone’s surprise.
- The dollar has gained momentum leading to investors expecting a Fed rate hike this year.
- Gold rates have declined over the course of the week due to muted domestic demand as well as weakened global trends.
July‘16 - Week 5 (25th to 31st)
- Gold prices were recorded at Rs.3,178 on the 25th and they remained constant on the 26th as well.
- An increase by Rs.11 pushed prices to Rs.3,189 on the 27th, and prices were stable for another day.
- Consecutive increases on the 29th and 30th saw prices rise and close the month at Rs.3,219 per gram.
|1st June rate||Rs.2,934|
|30th June rate||Rs.3,105|
|Highest rate in June||Rs.3,180 on 27th of June|
|Lowest rate in June||Rs.2,916 on 3rd of June|
Jun'16 - Week 1 (1st to 5th)
- Gold rates are seeing brighter days in the month of June after its massive fall in May.
- Owing to the U.S. dollar easing up, gold rates have been able to ascend.
- There was a 2-day brief overnight fall in gold rates in the domestic bullion market, but fresh offtake from jewellery retailers and traders helped stabilize the rates.
- The hype of an interest rate hike by the U.S. Federal Reserve has died down, leading to investors showing more interest in gold again.
- The increase in demand has brought the prices back up.
- Gold rates are also on an inclined path owing to the dampening U.S. data report on job creation.
Jun'16 - Week 2 (6th to 12th)
- Gold traded at Rs. 3,003 per gram on the 6th of June, the second week of the month.
- Gold price declined two days later by Rs.20 on the 8th of June at Rs. 2,983 per gram.
- Gold price witnessed some improvement as gold price hit its highest for the week at Rs. 3,045 per gram on the 9th of June.
- Gold closed the week at Rs.3,006 per gram.
Jun'16 - Week 3 (13th to 19th)
- Gold traded at Rs. 3,056 per gram on the 13th of June.
- Prices shot up by Rs.10 on the 14th of June and remained unchanged till 16th of June.
- Gold witnessed a rise in the price in the third week of June as gold closed the week at Rs. 3,109 per gram on the 19th of June.
Jun'16 - Week 4 (20th to 26th)
- As the week progressed, there was a reduction in the price of gold, albeit slightly.
- This could be attributed to the easing up of U.S. dollar as well as impact of a potential ‘Brexit’.
- The highest rate of the week was on the 20th of june where gold traded at Rs. 3,120 per gram.
- Gold rate closed at Rs. 2,950 per gram which was also one of the lower rates for the entire month.
- Although there was an increase in the demand for gold, due to other factors, as mentioned previously, there was a dip in the prices.
Jun'16 - Week 5 (27th to 30th)
- Prices were recorded at Rs.2,950 on the 27th of June and Rs.3,167 on the 30th of June.
- Prices fluctuated during the week and marginal losses were written off by subsequent gains.
- The overall decline in prices between the four days was Rs.217.
|1st May rate||Rs. 3,119 per gram|
|31st May rate||Rs. 2,960 per gram|
|Highest rate in May||Rs. 3,120 per gram on May 7|
|Lowest rate in May||Rs. 2,960 per gram on May 31|
May'16 - Week 1 (1st to 7th)
- There was no significant change in gold prices in comparison with the previous week.
- Prices were Rs.3,119 on the 1st of May and Rs.3,120 on the 7th of May.
- Prices were mostly stable owing to global cues and consistent domestic demand.
May ‘16 - Week 2 (8th to 14th)
- There was no significant change in gold prices in comparison with the previous week.
- Prices were Rs.3,120 on the 8th of May and Rs.3,080 on the 14th of May.
- Despite a marginal decline on the 9th of May, prices were stable for the remainder of the week owing to global cues and consistent domestic demand.
May ‘16 - Week 3 (15th to 21st)
- Prices remained stable from the previous week as we head into the third week of May.
- Prices were recorded at Rs.3,080 on the 15th of May and Rs.3,048 on the 21st of May.
- Prices remained stable for the first two days of trading after which they declined marginally for three days in succession before gaining stability for the rest of the week.
May ‘16 - Week 4 (22nd to 28th)
- Gold rate dropped significantly this week following the footsteps of the global gold markets.
- Gold prices were Rs. 3,058 on the 22nd of May and Rs. 2,994 on the 28th of May .
- Gold prices have been fluctuating but a pattern of steady decline has emerged owing to rising expectations of a rate hike soon after the Fed minutes were released. There has also been a decline in the intake of coin makers and industrial units.
May ‘16 - Week 5 (29th to 31st)
- Compared to the previous week, there were no major changes in the price of gold during the last week of May.
- From 29th of May to the 31st, the price of gold was Rs. 2,960 per gram.
- Price of gold marginally dropped as compared to the previous week.
- Gold traded at Rs. 3,120 on the 7th of May which was the highest for the month.
|1st April rate||Rs 2,943|
|30th April rate||Rs 3,119|
|Highest rate in April||Rs 3,119 on 30th|
|Lowest rate in April||Rs 2,933 on 5th|
|% Change||+ 5.98%|
Apr'16 - Weeks 1 & 2 (1st to 10th)
- Gold prices in India rose in the first few days of April as cautious statements from the US Fed regarding rate hikes, weak economic data from central banks and weak Dollar all contributed in making gold attractive as a safe haven.
- Prices were Rs.2,943 on 1st and Rs.2,988 on 10th.
- Prices were stable for the most part as bullion dealers in the capital continued their protests against excise duty on gold jewellery.
- Gold gained Rs.45 over the course of the first week.
Apr ‘16 - Week 3 (11th to 17th)
- Gold prices were slightly lower in the third week.
- Prices were Rs.2,988 on 11th and Rs.2,981 on 17th.
- Prices were mostly stable as global cues and domestic demand kept rates in a constant place.
Apr ‘16 - Week 4 (18th to 24th)
- Gold prices were marginally up in the fourth week.
- Prices were Rs.3,002 on 18th and Rs.3,007 on 24th.
- Prices didn’t see much variations as global and domestic cues checked rates.
Apr ‘16 - Week 5 (25th to 30th)
- The week started with gold trading at Rs 3,007.
- Gold rates increased over the week, witnessing a surge of over Rs 100.
- Gold traded at Rs 3,119 on 30th, to close the month on a high.
1st March rate
31st March rate
Highest rate in March
Rs 3,030 from 1st to 14th
Lowest rate in March
Rs 2,940 on 15th, 16th and 17th
Mar'16 - Week 1 (1st to 6th)
- Gold markets were closed in the many parts of the country as jewellers and traders went on a strike to protest against the budgetary announcement of 1% excise duty on jewellery sales.
- Prices were constant at Rs.3,030 over the course of the first week.
Mar'16 - Week 2 (7th to 13th)
- Gold markets remained closed over the 2nd week also as jewellers continued their protest against 1% excise duty on non-silver jewellery and mandatory quoting of Pan card for transactions above Rs.2 lakhs.
- Prices were constant at Rs.3,030 throughout the second week also.
Mar ‘16 - Week 3 (14th to 20th)
- Markets experienced closure in the third week also, with little changes in rates.
- Prices were constant at Rs.2,998 all through the week.
Mar ‘16 - Week 4 (21st to 27th)
- Gold prices were stable at Rs.2,998 till 23rd and Rs.2,948 till 27th
- Traders continued with their protest against proposed taxation measures however most jewellers were open for business in the national capital
Mar ‘16 - Week 5 (28th to 31st)
- A poor performance by the US Dollar helped gold rates remain constant, with Indian markets performing well.
- Gold rates were steady at Rs 2,948 throughout the week.
1st February rate
29th February rate
Highest rate in February
Rs.3,049 on 26th
Lowest rate in February
Rs.2,712 on 1st
*Rates as per New Delhi rates.
Feb'16 - Week 1 (1st to 7th)
- Gold prices in India rose in the first week of February on the back of positive global cues and strong internal demand from jewellers to meet the wedding season sales.
- Prices were Rs.2,712 on 1st and Rs.2,868 on 7th.
- Gold appreciated on back-to-back days till 6th and was stable on 7th on account of weekend holidays.
- Gold traded above Rs.2,800 from 4th to 7th.
- Gold profited by an overall margin of Rs.156 through the week and touched a high of Rs.2,868 on 6th and 7th to close the week at 9-month high figures.
Feb '16 - Week 2 (8th to 14th)
- Gold rates appreciated in the 2nd week of February on the back of seasonal demand in the domestic sector, a weaker rupee which led to higher import costs as well as strong global cues.
- Prices were Rs.2,863 on 8th and Rs.2,946 on 14th.
- Gold dropped to Rs.2,835 by 11th before rallying to Rs.3,008 on 12th, breaching 19-month highs.
- Gold settled at a healthy Rs.2,946 to end the week on a high note.
Feb '16 - Week 3 (15th to 21st)
- Gold lost marginal value in the third week as weaker global trends and tepid buying in the domestic sector pushed prices down before recovering towards the end of the week.
- Prices were Rs.3,008 on 15th and Rs.2,993 on 21st.
- Gold dropped by Rs.91 on 16th to fall to Rs.2,917 before rallying till 19th to recover the lost value and post a slight gain at a trading value of Rs.3,018.
- Gold prices dipped to Rs.2,993 on 20th and remained stable at that level on 21st.
Feb '16 - Week 4 (22nd to 29th)
- Gold prices appreciated toward the close of February, ending an especially gainful month that saw net monthly gains at 4-year high levels.
- Rates were Rs.2,993 on 22nd and Rs.3,037 on 29th.
- Prices were spurred by strong global trends while they dipped a bit towards the end of the month on weak domestic demand.
- Gold rose to a high of Rs.3,049 by 26th before settling at a healthy Rs.3,037 for the rest of the month.
|4th January rate||Rs.2,594|
|31st January rate||Rs.2,759|
|Highest rate in January||Rs.2,759 on 30th and 31st|
|Lowest rate in January||Rs.2,594 on 4th|
Jan'16 - Week 1(4th to 10th)
- Gold gained value in the 1st full week of trading in 2016 as domestic demand picked up while global cues also affected the upward rise in rates.
- Prices were Rs.2,594 on 4th and Rs.2,631 on 10th.
- Gold dropped to Rs.2,594 by 7th before rising on 8th and 9th by an overall margin of Rs.37 to touch Rs.2,634 by 9th.
- Prices were stable at Rs.2,634 on 10th on account of the weekend.
Jan '16 - Week 2 (11th to 17th)
- Gold prices were down in the second week, falling from 2 month high rates achieved in the 1st week of the month as domestic demand was somewhat muted and global cues were also weak.
- Prices were Rs.2,679 on 11th and Rs.2,663 on 17th.
- Gold rates fluctuated around Rs.2,660 for the most part of the week.
- Prices went down during the last 3 days, falling to as low as RS.2,642 on 16th.
Jan '16 - Week 3 (18th to 24th)
- Gold prices appreciated during the 3rd week on the back of increased domestic demand from jewellers to meet the wedding season sales, while global cues also pushed gold rates up.
- Prices were Rs.2,663 on 18th and Rs.2,717 on 24th.
- Gold appreciated to Rs.2,701 by 20th before dropping slightly to Rs.2,695 by 23rd.
- Prices appreciated on 24th to close the week at Rs.2,717.
Jan '16 - Week 4 (24th to 31st)
- Gold prices appreciated in the 4th week.
- Rates were Rs.2,717 on 25th and Rs.2,759 on 31st.
- Gold prices were stable at Rs.2,717 till 28th before appreciating on the last three days by an overall margin of Rs.42 to end the week and month at Rs.2,759.
1st December rate
31st December rate
Highest rate in December
Rs.2,636 on 17th and 18th
Lowest rate in December
Rs.2,551 on 1st
Dec'15 - Week 1 (1st to 7th)
- Gold rate in India increased in the 1st week of December.
- Prices were Rs.2,551 on 1st and Rs.2,597 on 7th.
- Gold appreciated to Rs.2,568 on 2nd and settled at Rs.2,567 on 3rd, before losing out the gains on 4th to drop to Rs.2,553.
- Gold was stable at Rs.2,555 on 5th before gaining substantially on 6th to touch Rs.2,597, and stayed at that level on 7th.
Dec'15 - Week 2 (8th to 14th)
- Gold prices were volatile in the 2nd week.
- Prices were Rs.2,595 on 8th and Rs.2,599 on 14th.
- Gold prices dropped by Rs.23 on 9th to fall to Rs.2,572 before recovering Rs.9 on the next day to settle at Rs.2,581 on 10th.
- The next two days saw sustained fall in rates of Rs.5 and Rs.8 which brought prices down to Rs.2,568 by 12th.
- Gold made a significant comeback on 13th, appreciating by Rs.31 to rest at Rs.2,599.
- Gold was stable on 14th at Rs.2,599.
Dec '15 - Week 3 (15th to 21st)
- Gold prices appreciated in the 3rd week.
- Rates were Rs.2,577 on 15th and Rs.2,610 on 21st.
- Gold rallied on 16th by Rs.27 on 16th to breach the 2,600 mark for the first time in the month and settled at Rs.2,604.
- Prices rose again on 17th by Rs.32 to settle at Rs.2,636.
- Gold remained stable at Rs.2,636 on 18th before dropping by Rs.26 on 19th to rest at Rs.2,610.
- Prices were stable at Rs.2,610 on 20th and 21st.
Dec'15 - Week 4 (22nd to 28th)
- Gold prices rose in the 4th week.
- Rates were Rs.2,578 on 22nd and Rs.2,615 on 28th.
- Rates were stable at Rs.2,578 till 24th before appreciating sharply to Rs.2,615 on 25th by a margin of Rs.37.
- Gold was stable at Rs.2,615 for the remaining part of the week owing to holidays.
Dec'15 - Week 5 (29th to 31st)
- Gold prices dropped in the 5th week.
- Rates were Rs.2,560 on 29th and Rs.2,534 on 31st.
- Prices fell by Rs.6 on 30th and Rs.20 on 31st to end at Rs.2,534.
1st November rate
30th November rate
Highest rate in November
Rs.2,682 on 2nd and 3rd
Lowest rate in November
Rs.2,560 on 30th
Nov '15 - Week 1 (1st to 7th)
Gold rates vary across different cities in India. Key reasons for this are:
- Gold rates in India in the 1st week of November.
- Prices were Rs.2,676 on 1st and Rs.2,632 on 7th.
- Gold gained value on 2nd and 3rd to touch Rs.2,686 at the end of the day on 3rd.
- Prices stayed the same on 4th before declining by Rs.44 on 5th to fall to Rs.2,642.
- Rates declined again on 6th to fall to Rs.2,630.
- There was a slight gain in rates on 7th when gold touched Rs.2,632.
Nov '15 - Week 2 (8th to 14th)
- Gold rate lost marginal value over the 2nd week of November in India.
- Gold was priced at Rs.2,613 on 8th and Rs.2,591 on 14th.
- Gold gained Rs.17 on 10th to touch Rs.2,630 and remained stable around this value till 12th.
- There were drop in rates on 13th and 14th by Rs.29 and Rs.9 respectively, taking gold to Rs.2,591 by end of the week.
Nov '15 - Week 3 (15th to 21st)
- Gold lost marginal value in the 3rd week of November.
- It was priced at Rs.2,591 on 15th and Rs.2,584 on 21st.
- Gold appreciated to Rs.2,596 on 17th before trading in negative over the next two days to rest at Rs.2,564 on 19th.
- Prices went upward in the next two days to come to Rs.2,584 on 21st.
Nov '15 - Week 4 and 5 (22nd to 30th)
- Gold rates declined over the last 9 days of November.
- Prices were Rs.2,580 on 22nd and Rs.2,560 on 30th.
- Gold dropped to Rs.2,573 on 23rd before recovering to Rs.2,582 by 27th.
- Prices fell to Rs.2,579 by 29th before declining by Rs.19 on 30th to rest at Rs.2,560 at month end
1st October rate
31st October rate
Highest rate in October
Rs.2,728 on 22nd
Oct '15 - Week 1 (1st to 7th)
- Gold gained value in the first week of October.
- It was priced at Rs.2,642 on 1st and Rs.2,662 on 7th.
- Prices increased by a margin of Rs.45 on 4th to touch Rs.2,668 from Rs.2,623.
- Prices stayed around the 2,660-2,670 for the remaining part of the week.
Oct '15 - Week 2 (8th to 14th)
- Gold prices increased on the whole again in the second week of October.
- Rates were Rs.2,670 on 8th and Rs.2,688 on 14th.
- Rates appreciated to Rs.2,674 by 12th before a gainful session on 13th when prices rose to Rs.2,699.
- Gold lost value to rest at Rs.2,686 on 14th.
Oct '15 - Week 3 (15th to 21st)
- Gold rates were stable on the whole in the third week of the month.
- Rates were Rs.2,720 on 15th and Rs.2,718 on 21st.
- Gold rate on 18th at Rs.2,728 was the highest gold rate in India for October.
- Prices increased steadily over the week except on 17th and 20th when there was a drop in rates.
Oct '15 - Week 4 (22nd to 28th)
- Gold lost value in the fourth week of the month.
- Rates were Rs.2,725 on 22nd and Rs.2,708 on 28th.
- Rates declined steadily for the most part of the week.
- There was a slight gain on 27th when gold rose to Rs.2,706 from Rs.2,704, with the same appreciation happening on the next day also.
Oct '15 - Week 5 (29th to 31st)
- Gold rate declined considerably in the last 3 days of the month.
- Prices were Rs.2,708 on 29th, which declined to Rs.2,685 on 30th and further declined to Rs.2,676 on the last day of October.
Gold prices in India in the month of September 2015 have been highly dynamic. Starting at Rs.2,669 on 1st September, prices climbed steeply to Rs.2,699 on 2nd September. Rates then fell to Rs.2,665 by 5th September owing to market dynamics and held steady for the most part of the 1st week and starting of the 2nd week of the month. By 11th rates had gone down to Rs.2,637 and touched rock bottom rates for September on 14th of the month, when gold closed at Rs.2,627.
Gold rates stayed at the Rs.2,630 level till September 17th before rallying over the next two days to Rs,2,666 on 19th. Prices remained more or less the same for the next 3 days before falling to Rs.2,647 on 24th of the month. Gold rates climbed on 25th and 26th, and reached peak rate for the month of September by end of 26th. Prices stayed above the Rs.2,680 mark till 29th September before falling to Rs.2,653 by end of the month.
As an overview, gold rate in India at the start of September was Rs.2,669, and month ending gold rate was clocked at Rs.2,653. Rates were volatile throughout the month, however gold rates at the start and end of the month were more or less the same. Gold rate in India is likely to remain volatile in the coming days however pick up in prices can be expected around the upcoming festival season.
Trading in gold is a preferred investment mode of investors who are financially savvy and have the required risk-appetite for this kind of market. It requires prudent monitoring of investments as gold prices are subject to change for many reasons. Maintaining or closing a position in this market depends on how well an investor can track, analyze and synthesize pricing information.
Some of the key factors that affect gold prices are outlined below:
- Import costs: Since demand is primarily met through gold imports, import costs affect gold rates. Higher the costs, higher the price of gold.
- Interest rates on bank fixed deposits: Bank FDs are the go-to investment option for Indians. It is only rivalled by investments in gold. When FD rates fall, investors prefer moving their money to gold. Hence, the demand for gold rises and thereby prices.
- Strength of the US dollar: When the US dollar weakens, gold rates in India rise and when the US dollar strengthens, gold prices in India fall. This is because central banks which maintain US dollar reserves tend to hedge against risks of a devaluing dollar by investing in gold. This pushes prices up. Also, India buys its gold from foreign countries and when the US dollar strengthens against the Indian rupee, it makes purchases of gold (usually done in USD), more expensive.
- Global economic stability: Gold prices rise during times of economic instability as gold is considered safer asset that others and people tend to move their money out of riskier assets into gold. Other assets bear the risk of being significantly devalued whereas gold which is has high liquidity continues to hold value even during times of crisis.
- Seasonality: In India, demand for gold during festivals, marriages and other auspicious occasions. Prices tend to be higher during these times.
- Inflation: Since gold is bought to hedge against inflation, gold prices tend to rise when inflation is on an upward trend.
- International prices: In general, when gold rates are on an upward trend, globally, gold prices in India also move upwards. Many central banks, especially in the US and in Europe hold huge gold reserves. When these banks or other financial organizations buy more gold, prices move upward.
International gold prices are hugely affected by the prices fixed on the London Gold Market, twice a day i.e. once at 10:30 a.m. and once at 3 p.m. USD is the currency generally used when quoting prices although it is fixed in Pound Sterlings and Euros as well.
- Production costs: Mining companies increase prices at times on account of production costs. This is reflected in the price of gold imported in India.
- Supply: Domestic production and supply is limited in India. Supply constraints can push prices upwards. Similarly, lower supplies of gold globally can make the metal dearer in India.
Gold rates vary across different cities in India. Key reasons for this are:
- Taxes: State taxes differ from state to state. Some states levy higher taxes than others. This is one of the reasons why gold is more expensive in some cities than others.
- Demand: Owing to different population sizes and varying demographics, demand for gold also varies. Discounts are usually offered on larger volumes. So gold prices in cities like Mumbai are lower given larger quantums of transactions.
- Carriage: Indian imports a bulk of its gold requirements by sea. Gold prices at port cities e.g. Chennai are lower than those in interior cities e.g. Delhi because of the absence of inland transport charges.
- Local associations: Cities have their own local gold associations which have a say in setting the prices. This will also account for differences in gold prices between cities.
Gold is measured in grams and troy weight. (Troy ounces, million ounces, grams, kilograms, tonnes, short tonne, metric tonnes, tolas etc.)
Karat is used to represent purity when gold is mixed or alloyed with other base metals such as copper. 24K or 24 karat gold is pure gold. Fineness is to represent gold parts per thousand. (18K gold would be 18 of 24 karats out of 1,000 parts or a fineness of 750).
Carat - It is a unit of weight used to measure precious gems such as diamonds as well as pearls. 200 milligrams or 0.2 grams make a metric carat. Carats are abbreviated to ct. Carats are often mistaken to denote size.
Karat - It is a unit of finesse or purity used to measure gold. 24 karat gold denotes pure gold. When gold is mixed with another metal the purity is diluted. The purity is then expressed as the parts of gold out of 24. E.g. 22 karat gold (mixed with copper) will be 22 parts gold and 2 parts copper. Gold being soft is alloyed with another metal, usually copper, to attain form. Karat is abbreviated to kt.
Karats represent the finesse or purity of gold. Gold being a very malleable metal is too soft to attain form on its own. It is usually alloyed with another metal, mostly copper, in order to attain form. The purity of the gold is then represented in karats as the parts of gold present out of 24.
24 karat gold is 99.99% pure gold whereas 22 karat gold is 91.67% pure. 22 karat gold means, the alloy consists of 22 parts gold and 2 parts of the alloyed metal.
24k gold is priced higher than 22k gold being purer, however, some people prefer 22k gold being more durable. Import duties are generally lower for 24k gold and higher for 22k gold.
India’s primary demand for gold is for use as jewelry. Investments are the next greatest demand driver. Unlike China, the next highest consumer of gold in the world, whose primary demand for gold is for industrial purposes, India’s industrial usage of gold is minimal.
Domestic production of gold in India is limited and, given its strong demand, India relies heavily on gold imports every year. Currently, the Kolar mines in Karnataka are the only operational mines in India, grossly unable to meet domestic demand.
Gold imports in India constitute the next largest chunk of total imports after crude oil. Of late, the government has increased its focus on curbing the negative impact of heavy gold imports viz. a widening trade deficit and rupee devaluation.
Gold is considered valuable for many reasons, mainly
- Value: Although gold prices fluctuate in the near to medium term, its value tends to rise in the long-term. For this reason, people invest and hold on to gold for a long period of time. Gold tends to not be affected by geopolitical or economic turmoil. It is valuable during emergencies providing liquidity as it is easily traded. It is a hedge against inflation as well and acts as a great value addition to an investor’s portfolio.
- Industrial uses: Gold is used in certain manufacturing processes. Although not comparable to retail consumption, many countries use gold for production purposes.
- Versatile metal: Gold is available in many useful forms making it a versatile investment. It is popularly used as jewellery and other gift items and held in the form of coins, bars or bullion. It is also available in edible form or woven into fabrics. Besides all this, paperless gold instruments are now being used to represent physical gold.
- Gold reserves: Gold is maintained as reserves to back paper currencies by many countries. These paper currencies attain their values based on the value of the gold reserves that back them.
- Limited supply: The amount of gold that can be mined and produced in the world is limited. Due to this, gold attains more value as an irreplaceable asset.
- Tradition: Gold has traditionally been used for financial transactions. This has passed down through the ages and prevails even today.
Indian gold reserves
This is the amount of gold held by India’s Central Bank. Referred to as store value, it is against these reserves that currency is printed and circulated in the economy. Besides providing value to currency, these reserves act as security for amounts due to depositors or trading partners.
Indians primarily invest in gold as a means to counter inflation. While the price of gold may fluctuate over time, the value of this metal remains relatively stable, especially in the long-run. Returns on gold are generally higher in the long-run as compared to other asset classes. Real estate and equity markets have proven to be the exceptions but for most Indian investors, gold still forms a huge part of their investment portfolios.
Traditionally, investment in gold has been in the form of jewelry, gold bars or gold coins. As financial markets developed over the years, new investment avenues have opened up. Gold is now increasingly being invested in through Gold ETFs (Exchange Traded Funds) or through mutual funds which invest in gold or through stocks of companies that are in the business of gold/gold-related activities. Gold is also traded as a commodity on commodity exchanges.
Investments in gold commodities, ETFs, funds and stocks can be done online adding another dimension to gold investments in India.
Gold is traded through spot contracts or derivative contracts i.e. investors can trade in gold without possessing gold in its physical form.
- Gold spot contracts are whereby gold is bought and immediately delivered (i.e. sold and delivered right away).
- Gold futures contracts are whereby gold is bought and sold at a later date as per the contract. Unlike most other commodities, gold futures are traded at spot prices and not at prices influenced by demand and supply.
Gold is traded as a commodity on three major commodity exchanges in India:
- Multi Commodity Exchange (MCX)
- National Commodity & Derivatives Exchange (NCDEX)
- National Spot Exchange (NSEL)
MCX is India’s leading commodities exchange and a leading exchange to trade in gold. Contracts traded here offer great liquidity and offer investors the option of contracts in four different sizes as outlined below with their other key features:
- Ticker GOLD
- Trades during 6 months of the year i.e. February, April, June, August, October, December (Monday - Saturday)
- 1 contract = 1 kg of gold
- Initial margin: 4%
- Daily price limit: 3%
- Upper limit on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
- Quality: 995 purity, 999 purity
- Gold Mini:
- Ticker GOLDM
- Trades in all 12 months i.e. January to December (Monday - Saturday)
- 1 contract = 100 grams of gold
- Initial margin: 4%
- Limits on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
- Quality: 995 purity, 999 purity
- Gold Guinea:
- Ticker GOLDGuinea
- Trades in all 12 months i.e. January to December
- 1 contract = 8 grams of gold
- Limits on positions: Up to 2 MT or up to 250,000 contracts at one time
- Gold Petal:
- Trades in months as specified by the exchange
- 1 contract = 1 gram of gold
- Limits on positions: Up to 2,000,000 contracts at one time
The best decisions are informed decisions and a decision to buy gold should also be a well-informed one. Especially given the present-day scenario where one has diverse investment options, the decision to invest in gold is not just ‘at what price’ but also when, how and how much. Gold prices, gold price trends and movements, investment channels and returns on investing in gold are all important factors to consider.
Information is now available online from a number of sources both authoritative as well as informational. This facilitates decision making to save time and effort. Besides the latest gold rates and factors that affect gold prices, information is available on gold production, trades, different forms of gold (physical and paperless), leading jewellers etc. Experts also publish their views on gold as an asset as well their outlook on the performance of gold.
|To convert from||To||Multiply by|
|Troy ounces||Penny weights||20|
|Troy ounces||Avoirdupois ounces||1.09714|
|Avoirdupois ounces||Troy ounces||0.911458|
|Short tonne||Metric tonne||0.9072|
Gold is one precious metal which has managed to retain its shine over the years, creating a niche space for itself in the investment world. Being a natural resource, there is a constant mismatch between the demand and supply, making gold an extremely precious commodity, with people viewing it as a safe and reliable investment option. India is one of the largest consumers of gold in the world, with estimates indicating that the residents own over 20,000 tonnes of this precious metal. While our love for gold is witnessed across the length and breadth of India, there is more to gold than just its utility, aspects which most of us are unaware about.
Gold as a commodity isn’t the easiest one to comprehend, with certain nuances having a great impact on it. Taking time to learn about them can help you get the best out of your investment, making it truly shine.
What is the current gold price in India ?
Gold rates change on a daily basis, with a number of factors impacting their price in a particular place on a given day. Demand and supply, global market conditions and currency fluctuations are some of the most critical factors which go into determining the rate of gold in a country, with prices changing every day. Gold rates in India have been following international trends, with a rise of close to 16% witnessed in the last four months. Purity also plays a key role in determining gold rates, with 24 karat gold costing more than 22 or 18 karat gold. Individuals who want to invest in gold would need to pay around Rs 2,962 per gram for 24 karat gold and Rs 2,766 for a gram of 22 karat gold (as of 25/04/2016).
What are the different avenues to invest in gold ?
Gone are the days when the only mode to invest in gold was to purchase it physically. Today, there are multiple avenues through which one can buy gold, with the popular ones mentioned below.
Gold mutual funds – Gold mutual funds are offered by a number of organisations, offering ease of investment through SIPs.
Gold ETFs – Gold Exchange Traded Funds permit trading of gold in units (by weight), with the investment viewed as debt mutual funds by tax authorities.
Gold futures – Gold futures are popular among certain investors, with the MCX and NCDEX offering avenues to invest in gold through derivatives.
E-gold – E-gold is a new option to invest in gold, offering ease and flexibility to investors.
Physical gold - Physical purchase of gold in the form of coins, jewellery, bars, etc. continues to account for a major portion of investment, with the new modes expected to gain more acceptance with time.
How many grams of gold in one tola?
Gold is purchased by weight, with every gram costing a decent amount of money. India is home to over 1.2 billion people, each one unique and having different modes of communication, including units of weight. While there are internationally accepted conventions when it comes to weight, certain regions have their own traditional units, with the Tola being one such popular unit.
1 Tola roughly translates to around 11.6 grams, with 1 kg of gold corresponding to 85.7 Tolas (approximately). This unit is still used in a number of towns and cities, with 1 Tola gold costing Rs 30,887 (as of April 25, 2016).
How to buy gold?
Buying gold isn’t very hard, given the multiple avenues available, but there are a few key points one should keep in mind before spending that hard earned money.
Research – Gold rates change on a daily basis and it is imperative that one does research before buying gold. Observing trends and staying abreast of changes can ensure that you get a good deal on the investment, reducing the chances of being cheated.
Gold selection – Gold can be purchased in different forms, with each one offering unique advantages. Choose an investment avenue which matches your needs.
Certification – There are numerous occasions wherein people have been duped into buying gold of inferior purity, purely on account of blind faith. Ensure that the jeweller or source you intend to buy from has a good record, and insist on purity certification.
Online purchase – Individuals who wish to buy gold online need to ensure that the source they choose is trusted, for a number of sellers on the internet can be fake.
How to sell gold ?
Gold is one investment which is always in demand, making it a liquid asset. Selling gold isn’t hard, with most jewellers and pawn shops willing to buy gold at market rates. Individuals who wish to sell gold need to ensure that they know current gold rates, for buyers may choose to haggle or negotiate, and failing to know present prices could result in selling gold at lower rates.
Also, gold coins and bars attract better rates than jewellery and are easier to sell. Individuals who do not wish to sell gold can choose to avail gold loans against it, with a number of banks and private lenders offering loans keeping gold as collateral.
What are the different purity levels in gold?
Gold is often purchased by weight and purity, with the purity measured in a unit called Karat. Gold is available in different purities, with the popular ones being 24 karat, 22 karat and 18 karat. While 24 karat gold is used extensively as an investment, 22 and 18 karat gold can be used to make jewellery and ornaments.
22 karat gold is a mixture of gold and alloys, in the ratio 11:1. This essentially means that 1 gram of 22 karat gold has around 91.5% pure gold, with other metals making up the remaining portion. These impurities are added to pure gold to make it more malleable and ductile, thereby making it perfect for jewellery.
Similarly, 18 karat gold is a mixture of gold and metals in the ratio 3:1, i.e. 75% pure gold and 25% metals. This is typically cheaper than 22 and 24 karat gold on account of impurities. 18 karat gold typically has a dull colour, making it easily recognisable.
Other gold options include 14 karat gold (which has 58% gold), 10 karat gold (with 42% gold) and 6 karat gold (with 25% gold).
What is 24 karat gold?
24 karat gold is the purest form of gold which can be purchased, having no impurities. This purity makes it ideal for investments, with most investors choosing to purchase 24 karat gold. The only drawback of this purity is that 24 karat gold cannot be used to make jewellery or ornaments, limiting their use to gold coins or bars.
How to buy gold coins in India?
Gold coins are extremely popular in the country and are available in different weights, ensuring that investors can buy gold which suits their budget. Gold coins can be purchased from banks, jewellers, post offices or online stores, with the popular ones being in the 1g to 10g weight bracket. A number of jewellers and online stores sell coins with the imprint of Gods or Goddesses, charging higher for such coins.
One can walk into any bank or jewellery store and choose to buy a coin, albeit a PAN might be required if the cost exceeds Rs 50,000. Most jewellers and banks offer a purity certificate with the coin, which could hike the cost of a coin. Gold coins can be purchased by purity as well, with the popular options being 22 and 24 karat.
One should remember to keep certain basic points like market rate, dealer reputation, certification, etc. before buying gold coins.
How to buy gold bars?
Gold bars are typically reserved for serious investors, people who have sufficient funds to invest in them. These bars can be purchased in different weights, typically ranging between 500g and 1kg. Banks and big jewellers sell gold bars, although one can also purchase them online. One must remember to check the purity and prevailing market rates before investing in gold bars. A Pan is required if one is purchasing gold bars worth over Rs 50,000.
Why gold price is increasing in India?
Gold rates in the country change on a regular basis, with a number of factors impacting rates. A close look at recent trends could highlight the reason for such changes. Some of the most common factors impacting gold rates in India are mentioned below.
Demand and supply – Gold rates increase when the demand exceeds supply. Gold, being a natural resource is available in limited quantities, and each time the supply reduces there is a spurt in gold rates.
International relations – International trends have a deep impact on gold rates in India, primarily due to the fact that India depends on imports to meet local demand. Any changes in international relations could translate into a change in local gold rates.
US dollar – The US dollar plays a key role in determining international gold rates. A strong dollar results in poor gold performance and vice versa, resulting in costlier gold each time the dollar underperforms.
Market conditions – Gold is inversely proportional to market performance, with prices going up each time there is pressure on markets.
Government taxes and duties – The government imposes taxes and duties on a number of commodities, including gold. Any increase in these taxes automatically pushes gold rates, pinching the pocket of buyers.
There has been a recent increase in gold rates due to improved performance on the international front. The US Federal Policy rate change had a huge impact on prices, helping them pick up after a poor performance last year. One could see a further hike in rates in the coming weeks, as the US Central Bank is set to change its rates, which are likely to have a direct impact on gold.
|Also Know: Silver Rate in India|
A Recent Survey Concluded That Only 15% Population In Metro Cities Are Aware Of Credit scores
Credit Bureaus is quite popular in India. Recently, there was a survey conducted in eight metros in India. According to the survey, only 15% of the population know about the credit score system.
Over 53% of respondents stated that they do not know that such a system exists. This survey was conducted by Credit Sudhaar on about 1,500 people. The most shocking fact is that about 70% of the population are aware that a good credit system is very important when obtaining financial assistance and about 41% of them very well knew that have a sound credit score attracts low interest rates on financial products.
19th October 2016
Gradual Improvement in Gold Trading Figures following a Price Decline
As Gold trade in the country makes a slow comeback, trading figures from the rest of Asia improves on a greater scale. Gold transactions that witnessed a 5 percent decline in the previous week have started to recover as Diwali approaches. Even though the demand was stronger during Dussehra season, gold discounts remained low in conjunction with the overseas rates. Gold was priced at 29,300 for 10 grams on October 7, which is considered as the lowest after the price drop in June. A Mumbai based gold dealer has reportedly said that as the market sentiment improves, retailers have actively started buying the yellow metal.
17th October 2016
Firm Prices For Gold in the Domestic Market
Gold prices are predicted to stay firm in the domestic market in the range of Rs.30,500 and Rs.33,500 per 10 grams. In the global market, political and financial risks have been high for the yellow metal, but demand for gold has been revived in the domestic market as the festive season blossomed. Prices of gold are expected to gain strength as demand is predicted to be stable owing to the festive season and wedding season. Recently, gold prices plummeted as the U.S. Federal Reserve raised expectations of an interest rate hike again. In India, stricter tax laws have called for all customers buying gold in cash to produce their PAN details. This seriously hampered sales of gold. In major cities, gold of 24 karat purity has been trading in the range of Rs.31,000 and Rs.31,500 per 10 grams.
17th October 2016
Drop in Gold and Silver Prices during Diwali
According to recent reports, the prices of Gold and Silver have fallen down by 5% and 10% respectively in the last one month. The traders have stated that the prices may drop down further if the US nonfarm payroll data shows positive results. This has led to a drop in discounts also. The gold prices have come down to Rs.30,012 per 10 grams from Rs.31,466 per 10 grams in September.
The silver prices have come down to Rs.42,984 per kg from Rs.47,964 per kg. According to Haresh Acharya(Secretary, Bullion Federation), the prices might drop down further. This might increase the demand for gold and silver during Diwali. Investors are waiting for more drop in prices before they enter the market.
12th October 2016
Gold Prices Falls Below Rs.31,000 Due To Rate Hike Speculation
Gold traders are in a state of shock after gold prices fell to its lowest since June. The fall in gold prices left investors and other participants speechless as it fell below $1,300 an ounce. Following the weak trend in the international market, gold fell by Rs.730 to Rs.30,520 per 10 grams. Positive information about U.S rate hike and the fall in British Pounds, increased dollar rate and decreased the prices of gold worldwide. In New York, gold fell by 3.26% and stood at USD 1,268.40. In Delhi, gold of 99.9% purity and 99.5% purity each drifted by Rs.730 each and traded at Rs.30,520 and Rs.30,370 per 10 grams, respectively. On the other hand, silver prices also fell and dropped below the Rs.44,000 level.
7th October 2016
Gold prices remain at its lowest
Gold futures closed at their lowest level in over two weeks, despite optimistic forecasts from analysts for the year end. December Comex gold fell $3.20 an ounce at $1,313.80, while December Comex silver dropped $0.349 at $18.865 an ounce.
U.S. manufacturing data also impacted the gold prices. The Institute for Supply Management indicated that the U.S. manufacturing index went up to 51.5% last month post its fall in August. These stronger-than-expected results led to the dollar gain, while investors continue to try to understand whether U.S. interest rates will see a hike by the end of the year.
5th October 2016
Gold Prices Drop as Dollar Climbs up
As polls reveal the growing influence of Hillary Clinton after the election debate, the prices of gold and other commodities witness a considerable decline. Gold prices went down by 1 percent on Tuesday, marking its biggest loss in any single session. Onlookers consider Hilary as a safer bet than Donald Trump.
Analysts observe no-risk sentiment as the primary reason for fall in gold prices and the dollar gains. Currently gold remains in the price range of $ 1305 to 1345 receiving support and resistance equally on the global platform. Among the other precious metals, a significant decline is noticed in the silver and platinum prices. Palladium however maintains a steady price of $ 697.72 an ounce.
29th September 2016
Muted Demand of Gold Triggers a Price Decline
A slackened demand for gold overseas is casting its shadows even on the bullion market in India. This fall in gold prices in the domestic market have adversely affected many investors and the demand from stockists and jewellers continues to be low. On a global scale, the gold prices dropped 0.33 percent to $ 1345 an ounce.
The weak trend in global markets have slashed even the Silver prices down by Rs. 180 at Rs. 46,255 per kg, which was valued at Rs. 46,435 earlier. But while drawing a comparison between precious metals, silver has climbed up by 0.1 percent after going down to 1.2 percent in the previous session.
28th September 2016
Gold Prices Fell Due To Lack Of Demand From Jewellers
Gold prices succumbed to lack of interest displayed by local jewellers. Despite of the weak trend overseas, gold was performing well in India as investor awaited a correction measures against U.S rate hike. However, gold prices fell in India this week due to lack of demand. Gold closed at USD 1,310.20 an ounce In New York. In India, gold of 99.5 purity closed at Rs.31,050 per 10 grams. Gold of 99.9 purity closed at Rs.31,200 per 10 grams. On the other hand, silver fell below the Rs.46,000 benchmark. Silver prices declined and traded at Rs.45, 585 per kilo.
19th September, 2016
Gold Recovers by Rs.20, Buying Interest Up
Gold of purity 99.9% as well as 99.5% climbed Rs.20 each to Rs.31,070 and Rs.30,920 per 10g, respectively. According to traders, scattered buying of gold by jewellers in the domestic spot market along with a strong trend globally, has resulted in the recovery in gold prices. Sovereign remained at the same level at Rs.24,400 per piece of 8g each.
Meanwhile, silver also bounced back with additional Rs.250 to Rs.45,450 per kg and Rs.140 in weekly-based delivery to Rs.45,585 per kg. However, silver coins remained at Rs.75,000 for buying and Rs.76,000 for selling per 100 coins.
Overseas gold went up by 0.16% to USD 1,3250.50 per ounce, while silver rose by 0.66% to USD 18.97 in Singapore.
16th September 2016
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