Gold Rate Today

June 2017 - Week 1 (1st-4th)

• Gold rates in India saw some fluctuations owing to some rocky times in the US political sphere.
• On the 1st of June, gold was trading at Rs.2,977 per gram but went down to Rs.2,965 per gram on the 2nd as uncertainty grew in the US - a recurrent theme since Donald Trump’s election as US President.
• Prices went up to Rs.2,998 per gram as there were some low points in US-EU relationship, which pushed gold prices up.
• As US dollar remained on a low after the conflict, gold rates ended the first week of June at Rs.2,998 per gram.
• Gold trading was quite positive for the month as there was a Rs.21 increase since the beginning of the week.

June 2017 - Week 2 (5th - 11th)

• When the second week of June rolled out, gold was priced at Rs.3,006 per gram.
• Prices increased on the 6th to Rs.3,025 per gram as the US Employment Report still loomed large and anchored the market.
• However, the price hike was a little on the cautious on the 7th as it went up to Rs.3,030 per gram.
• The reason for caution was due to news reports that the Federal Reserve was deliberating on a possible rate hike.
• Prices dropped on the 8th to go down to Rs.3,012 per gram as they consolidated after the rise earlier in the week.
• Gold prices kept falling further as they went down to Rs.2,987 per gram on the 9th, because of some startling results in the UK General Elections.
• The election result combined with its implications on Brexit talks brought bullion trading prices further down to Rs.2,981 per gram on the 10th.
• Prices consolidated on the 11th, as gold was still seen trading at Rs.2,981 when the week ended.

June 2017 - Week 3 (12th-18th)

• Gold opened the third week of June at Rs.3,007 per gram on the 12th in India. This rate was due to relatively high demand for this metal from international markets.
• This rate was noted until the 15th of June as the demand was steady.
• There were a few doubts regarding gold trade as clarity was still needed about issues that were faced by banks that were importing bullion, due to GST.
• The gold rate in India fell on the 16th of June due to a fall in the demand for this metal. Gold was priced at Rs.2,992 per gram and reduced even further the next day.
• On the last two days of the week, gold price in India traded steadily at Rs.2,982 per gram.

June 2017 - Week 4 (19 to 25)

• Gold prices in the fourth week of June continued to trade at a steady rate, opening the week at Rs.2,982 per gram on 19 June.
• Prices continued to trade at a steady rate as there were minor fluctuations in demand as markets were unsteady due to continued uncertainty over the impact of GST.
• International demand for gold was also high, with the metal trading at Rs.2,987 per gram on 23 June in spite of a marginal dip in domestic demand due to recovering stock markets.
• Gold ended the week trading at Rs.2,992 per gram on 25 June, registering a marginal rise in value due to positive cues.

June ‘17 - Week 5 (26 to 30)

• The price of gold in the last week of June rose initially and was steady for the rest of the week.
• Gold was priced at Rs.3,002 per gram on 26 June, rising marginally due to an increase in demand from jewellers looking to replenish stock before the advent of GST.
• Prices fell to their lowest rate of the month, trading at Rs.2,972 per gram on 27 June after the initial spike, as demand stabilised.
• Prices rose to Rs.2,992 per gram on 28 June as local markets were jittery over the impact of GST on the bourses.
• In spite of a weak U.S. Dollar, there was no upward mobility in the price of gold, which remained stagnant at Rs.2,992 per gram as the month ended on 30 June.

May 2017 - Week 1 (1st-7th)

• Gold traded at Rs.3,011 per gram on the 1st and 2nd of May due to sustained demand from the previous month.
• However, due to falling demand for the safe-haven asset as a result of the U.S. Dollar gaining against the Yen, the gold rate in India reduced.
• Gold traded at Rs.2,982 per gram on the 3rd of May and declined further thereafter.
• Diminishing yet steady demand for this precious metal resulted in this metal trading at Rs.2,952 per gram from the 4th of May until the very end of the week. Political factors coupled with low demand resulted in a decline of gold rate as the first week of May progressed.

May 2017 – Week 2 (8th -14th)

• The gold price in India was Rs.2,942 per gram as the week began, with prices dropping marginally as markets were high following the victory of Emmanuel Macron in the French presidential election.
• Prices continued to drop as the week progressed, with the price of gold being recorded at Rs.2,928 per gram on 10th May as global markets traded high.
• A lowering of domestic demand after Akshaya Tritiya led to a dip in the price of gold, as it traded at Rs,2,918 per gram on 11th May.
• The gold rate in India remained constant as the week ended on 14th May, with gold prices declining by Rs.24 per gram during the week.

May 2017 - Week 3 (15th - 21st)

• Gold prices started the third week of May on a high during this week owing to a weak dollar.
• On the 15th, gold was trading at Rs.2,888 per gram which then went up to Rs.2,894 per gram.
• As the US dollar saw no signs of picking up, gold rates went up to Rs.2,910 per gram on 17th.
• On 18th saw gold prices go up to Rs.2,958 per gram - the highest rise in gold rates since Brexit - which was brought about by US President Donald Trump’s meddlesome behaviour.
• The US President was using his official capacity to influence the Russian connections his government was accused of.
• As markets seemed to recover after that volatile period, gold rates began to stabilise.
• On the 19th, gold rates decreased by Rs.4 to reach Rs.2,954 per gram and remained unchanged for the next two days as well.

May 2017 - Week 4 (22nd - 28th)

• Gold traded at Rs.2,977 per gram on the first day of the fourth week in India. This was due to relatively high demand for this metal from domestic markets. There were also no changes in the price of gold despite the Manchester blasts.
• This rate was noted until the 25th of the month as a result of steady demand for gold.
• However, the gold rate in India increased on the 26th of the month due to a fall in the value of the U.S. dollar.
• From the 26th to the 28th of May in India, gold was priced at Rs.2,992 per gram.

May ‘17 - Week 5 (29th to 31st)

• Gold prices in the last week of May were stable as demand was muted due to a steady U.S. Dollar.
• Gold was priced at Rs.2,992 per gram on 29th May, with the price staying constant from the previous week owing to below average trading in the yellow metal.
• In spite of market fluctuations towards the end of the month, prices continued to remain constant, with gold priced at Rs.2,992 per gram on 31st May.

April 2017 - Week 1 (1st-9th)

• Gold price in India in the first week of April were on the rise due to increased purchasing from industrial as well as retail sectors.
• Gold traded at Rs.2,991 per gram on the first day of the month of April.
• Due to steady demand from both domestic and international markets, the rate of gold was steady at Rs.2,991 per gram until the 3rd of April.
• As the week progressed, the rate of gold continued to increase due to increased offtake.
• The rate of gold was Rs.3,003 per gram between the 4th of April to the 7th of April.
• However, a marginal decline was noted in the gold rate in India during the last two days of the month with this precious metal trading at Rs.2,983 per gram.

April 2017 - Week 2 (10th-16th)

• Gold price in India endured a good time over the second week of April.
• On 10th, the metal was priced at Rs.2,956 per gram, which then went up to Rs.2,963 per gram on 11th.
• As there were plenty of global issues, markets became volatile, which sent gold prices up by Rs.38 to Rs.3,001 per gram on 12th.
• Gold rate in India went up again on 13th, as domestic demand kept going up, to reach Rs.3,018 per gram - an increase of Rs.17 per gram.
• Due to demand holding steady, prices rose for the 5th consecutive time this week to reach Rs.3,028 per gram.
• Prices rose on the last day of April week 2 as well as the metal was seen trading at Rs.3,040 per gram.
• Overall, the second week of April was very productive for gold trading, as prices rose by Rs.84 from the start to the end.

April 2017 - Week 3 (17th-23rd)

• The rate of gold in India during the third week of April was relatively stable due to steady demand for this precious metal.
• Gold traded higher in early trade due to rising tensions in North Korea and Syria, resulting in investors being driven to safe haven assets.
• Gold traded at Rs.3,057 per gram on the 17th of April. This rate was noted until the 21st of April due to steady demand for this metal.
• However, due to rise in the demand on the 22nd as well as geopolitical tensions, the price of gold rose to Rs.3,062 per gram and stayed steady at this rate until the end of the week.

April 2017 - Week 4 (24th-30th)

• The rate of gold in India during the third week of April was relatively stable with a few minor variations towards the end of the final week of the month.
• Gold opened the week at Rs.3,041 per gram due to relatively high demand and stayed steady at this price on the 25th as well.
• However, as the U.S Dollar gained versus the yen resulting in a decline in the price of gold as the week progressed.
• Gold traded at Rs.3,011 per gram from the 26th of April until the end of the week due to low but sustained demand.
• The French presidential elections as well as low demand for this precious metal resulted in the drop in the rate of this metal.

March 2017 - Week 1 (1st - 4th):

• Gold prices in India seemed to dwindle during the first week of March.
• On 1st, gold was trading at Rs.2,994 per gram and went down slightly to Rs.2,992 per gram.
• The 3rd saw gold prices drop in the country as dollar began to strengthen significantly to end the day at Rs.2,961 per gram.
• The first week of March ended with gold prices picking up slightly to reach Rs.2,972 per gram.

March 2017 - Week 2 (5th - 11th):

• The second week of March gave way to full of ups and downs with regards to gold rates.
• On 5th, gold was priced at Rs.2,972 per gram but went down marginally to Rs.2,971 per gram on 6th.
• The 7th saw gold prices dip significantly by Rs.27 as it went down to Rs.2,944 per gram and dropped again on 8th to hit Rs.2,931 per gram.
• After the decrease over the previous two days, gold prices picked up on 10th to reach Rs.2,951 per gram.
• The increase on 9th seemed like a false hope as an increase in US dollar value saw prices dip again.
• On 10th, gold in India was priced at Rs.2,931 per gram and went up by Rs.14 to end the week at Rs.2,945 per gram.

March 2017 - Week 3 (12th-18th):

• Gold prices in the third week of March were on the increase due to increased purchasing from industrial as well as retail sectors.
• Gold traded at Rs.2,971 per gram on the first day of the third week of March.
• Despite seasonal demand, the price of gold dropped by Rs.20 the next day to trade at Rs.2,951 per gram.
• The rate of gold continued to decline over the next two days owing to a fall in demand from markets overseas.
• On the 17th of March, rate of gold recovered marginally to trade at Rs.2,970 per gram.
• Gold traded at Rs.2,971 per gram on the last two days of the month owing to steady demand from domestic markets.

March 2017 - Week 4 (19th-25th):

• Gold rates saw some fluctuations during the fourth week of March owing to various factors like Donald Trump’s travel ban and a strengthening dollar.
• The week started on 20th with gold trading at Rs.2,941 per gram but fell to Rs.2,933 per gram on 21st as demand went down.
• On 22nd, gold prices consolidated to rise by Rs.44 per gram, thereby ending the day at Rs.2,977 per gram.
• The 23rd saw a slight decline in gold prices as dollar seemed to strengthen marginally.
• Gold was trading at Rs.2,973 per gram when 23rd came to an end and went down to Rs.2,965 per gram on 24th.
• On 25th, prices went down marginally by Rs.1 to hit Rs.2,964 per gram and remained unchanged at the end of the week on 26th.

March 2017- Week 5 (26th-31st):

• Gold rate in India fell over the last four days of March as demand for the metal seemed to decline.
• When business day started on 27th, gold was trading at Rs.2,979 per gram.
• The 28th saw gold prices drop to Rs.2,974 per gram even though rates were constant in the global market.
• Gold price in India took a hit on 29th, this time by Rs.12 to reach Rs.2,962 per gram and decreased again on 30th to reach Rs.2,960 per gram.
• Bullion saw its highest price decrease for the week as it went down by Rs.18 per gram to trade at Rs.2,942 per gram.

February 2017 - Week 1 (1st-4th):

• When the week began on 1st, gold was trading at Rs.2,957 per gram and continued at the same rate on 2nd as well.
• As global demand fell slightly amidst strengthening dollar, gold prices fell to Rs.2,940 per gram on 3rd.
• The 4th saw prices increase slightly to end the first week of February at Rs.2,944 per gram.

February 2017 - Week 2 (5th-11th)

• The price of gold in the second week of February was stable, with gold trading at Rs.3,034 per gram on 5th February on sustained demand from the domestic market.
• Prices increases the following day, trading at Rs.3,044 per gram, an increase of Rs.10 per gram as market fluctuations led to an increase in demand.
• The price rose to Rs.3,075 per gram on 7th February as the U.S. Dollar weakened due to continued instability arising out of uncertainty regarding the travel and immigration ban in the United States.
• Prices were stable for a few days before falling to Rs.3,068 per gram on 11th February, recording an increase in price of Rs.34 per gram over the week.

February 2017 - Week 3 (12th-18th)

• Gold prices in the third week of February were on the increase due to increased buying from the retail and industrial sectors.
• Gold was priced at Rs.3,048 per gram on 12th February, decreasing marginally from the previous week due to a drop in demand.
• Gold traded at Rs.3,044 per gram on 13th February, with prices falling marginally in spite of seasonal demand.
• Prices were constant till 15th February, after which gold traded at Rs.3,045 per gram as demand rose.
• Gold traded at Rs.3,070 per gram on 17th February and remained constant the following day.

February 2017 - Weeks 4 & 5 (19th-28th)

• The price of gold in the last two weeks of February did not see much fluctuation as demand was steady, which kept prices stable.
• Gold traded at Rs.3,070 per gram on 19th February, with the price remaining constant till 24th February due to consistent demand.
• Gold prices fluctuated in the international market due to markets dipping, but prices were unaffected due to high local demand.
• Gold rose to Rs.3,101 per gram on 25th February as demand increased overseas.
• The month ended with gold trading at Rs.3,101 per gram on 28th February, an increase of Rs.31 per gram over the week.

January 2017 - Week 1 (1st to 7th)

• The new year came like a breath of fresh air for gold in India as prices increased gradually over the week.
• When new year’s day began on the 1st, gold began to trade at Rs.2,821 per gram.
• The next day on the 2nd, gold prices increased by Rs.7 to trade at Rs.2,828 per gram, which trickled on to the 3rd as well.
• On the 4th, gold prices increased significantly by Rs.29 for the metal to trade at Rs.2,857 per gram and increased by Re.1 on the 5th to trade at Rs.2,858 per gram.
• New year seemed to improve buyers’ sentiments as prices went up further more to trade at Rs.2,869 per gram.
• At the end business day on the 7th, gold prices had increased again to cap off at Rs.2,872 per gram.

January 2017 - Week 2 (8th to 15th)

• Gold prices in the second week of January improved as demand was high, with gold trading at Rs.2,937 per gram on 8th January.
• Prices fell to Rs.2,841 per gram on 10th January as demand fluctuated due to a recovering U.S. Dollar, which made imports expensive.
• Prices jumped towards the middle of the week, as gold capitalised on unstable markets, rising to Rs.2,990 per gram on 12th January, an increase of Rs.59 per gram.
• Prices remained unchanged as the week drew to a close, with gold trading at Rs.2,990 per gram on 15th January, with the price rising by Rs.63 per gram.

January 2017 - Week 3 (15th to 21st):

• Gold rates seemed to be on the up and up for much of week 3 before seeing some fluctuations during the latter half of the week.
• The week began with gold trading at Rs.2,941 per gram.
• On 16th, gold prices increased and was seen trading at Rs.2,955 per gram which again went up to Rs.2,969 per gram on the 17th.
• Prices went up slightly to Rs.2,971 per gram on the 18th as global demand seemed to be on the rise.
• However, prices plummeted to Rs.2,951 per gram on the 19th and remained the same till the closing hours of the 20th.
• Prices increased again to hit Rs.2,962 per gram to end the week on a positive note.

January 2017- Weeks 4 & 5 (22nd to 31st)

• Gold prices increased during the week due to high demand from industry as well as market fluctuations.
• Gold traded at Rs.3,024 per gram on 22nd January, with the price rising to Rs.3,060 per gram on 23rd January due to a sudden spurt in gold purchases from Asia.
• Prices dipped to Rs.3,032 per gram on 25th January as domestic demand fell due to a rally by the stock markets, pushing demand for bullion low.
• In spite of fluctuations in the U.S. market due to confusion over implementation of an immigration ban, gold prices were low due to poor trading before the Lunar New Year.
• Gold ended the week trading at Rs.3,017 per gram on 31st January.

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:

1. Import costs: Since demand is primarily met through gold imports, import costs affect gold rates. Higher the costs, higher the price of gold.
2. 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.
3. 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.
4. 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.
5. Seasonality: In India, demand for gold during festivals, marriages and other auspicious occasions. Prices tend to be higher during these times.
6. Inflation: Since gold is bought to hedge against inflation, gold prices tend to rise when inflation is on an upward trend.
7. 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.

8. Production costs: Mining companies increase prices at times on account of production costs. This is reflected in the price of gold imported in India.
9. 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:

1. 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.
2. 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.
3. 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.
4. 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 measurements

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

1. 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.
2. Industrial uses: Gold is used in certain manufacturing processes. Although not comparable to retail consumption, many countries use gold for production purposes.
3. 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.
4. 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.
5. 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.
6. 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:

1. Multi Commodity Exchange (MCX)
2. National Commodity & Derivatives Exchange (NCDEX)
3. National Spot Exchange (NSEL)