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Gold prices in Karnal
Karnal is an important rice-producing region of Haryana, lies within the National Capital Region that includes New Delhi. The city has proud historical antecedents, believed to have been founded by Karna of the Mahabharata. It has passed through the reigns of Nadir Shah, the Marathas, Raja Gopal Singh of Jind and Raja Gurdit Singh of Ladwa, before the British took over the administration.
Karnal is dotted with historical monuments such as tombs of emperors and saints, temples and churches, and a fort. It was a walled city up to 1862, when the fort was given over to the Education Department. The city is the headquarters of Karnal district and has a population of more than 3 lakh as per the 2011 census.
Gold is an important commodity in Indian households, and Karnal is no exception to this preference. People of Karnal buy gold to wear on occasions such as weddings and parties, as well as give gold jewellery as gift on birthdays and anniversaries. Gold is also popular as an investment avenue. Those who use gold or ornamental purposes also purchase rolled gold or gold-plated jewellery. These ornaments generally contain about 1% of gold that is polished on to the surface.
Karnal’s gold rates generally follow a pattern of being lower than the prices of the precious metal in its neighbour and the country’s capital, New Delhi. Without any local gold production, Karnal depends on imported gold to meet its needs. Hence, fluctuations in international gold prices are reflected in the prices seen in Karnal.
The prices for 24-karat and 22-karat gold differ here just like in any other place in the country. While 24-karat gold is bought by jewellers and those investing in gold coins and bars, 22-karat gold is favoured by consumers buying jewellery. Pure gold comes at 24 karat. The 22-karat gold is mixed with 2 parts of silver, nickel, copper or other metals to form a stronger and more durable alloy to make ornaments and gold articles with.
Gold Rate Trend in Karnal for January 2020 to March 2020 (per gram of 24 karat gold)
|1st Day||Rs.3,995 per gram||Rs.4,169 per gram||Rs.4,274 per gram|
|Last Day||Rs.4,169 per gram||Rs.4,368 per gram||Rs.4,253 per gram|
|Highest Price||Rs.4,179 per gram on 7 January||Rs.4,394 per gram on 25 February||Rs.4,536 per gram on 7 March|
|Lowest Price||Rs.3,995 per gram on 1 January||Rs.4,127 per gram on 6 February||Rs.4,111 per gram on 20 March|
Quarterly Gold Rate in Karnal from January 2020 to March 2020:
- In the month of January, gold opened at Rs.3,995 per gram in Karnal, closed at Rs.4,169 per gram, with a high of Rs.4,179 and a low of Rs.3,995. The overall trend for gold during this month was one of an incline with prices going up by 4.35%. Some of the factors that contributed to this incline were continuing fears around the US-China trade war combined with speculation about Covid-19 becoming a pandemic that led to the appeal of precious metals as a safe-haven investment in times of market volatility. The US-Iran conflict also contributed to equities taking a hit which led to more investments in precious metals with prices going up.
- In February, the price of gold at the start of the month was Rs.4,169, which declined to Rs.4,127 in the first week (which was also the lowest for the month) but then again increased to Rs.4,394 by the end of the month, closing at Rs.4,368 (all prices per gram of 24 karat gold). The overall trend for gold during the month of February was a steep incline of 4.77% driven by the impact of the coronavirus pandemic on stock markets and economies around the world, although the World Health Organisation was slow to declare it as a pandemic. The appeal of gold as a safe-haven investment in times of uncertainty continued throughout the month of February as the virus spread to more than 180 countries around the world. The dips were at a time when China’s central bank released a monetary intervention that dimmed the sheen of gold somewhat with the dollar also holding firm. However, prices soon shot back up by the end of the month as investors returned to gold as a safe investment with Asian stocks plummeting due to the coronavirus impact.
- In the month of March, the price of gold started off at Rs.4,274 per gram and ended at Rs.4,253 per gram. There were steep dips and highs throughout the month with the highest price being Rs.4,536 per gram by the end of the first week but quickly plummeting to Rs.4,111 per gram by the end of the third week. Overall, the trend was on a decline of –0.49% throughout the month. This can be attributed to investors choosing the bullion market in an atmosphere of the coronavirus pandemic affecting stock markets across the world. The lockdown by the end of March in nearly every country in the world adversely effected the physical buying of gold with trading also slowing down considerably worldwide.
Gold demand in Karnal
There are no reliable figures available to tell us the quantum of demand for gold in Karnal. However, a quick look at the gold jewellery showrooms in the city reveals that the appetite for gold in Karnal is high. National brands such as Tanishq and Gitanjali have their outlets in Karnal. Apart from them, there are over 50 medium-to-small jewellers running brisk business in the city. Since Karnal city is the district headquarters, people from the rural areas and the nearby towns also flock to the city to buy their ornaments.
Gold investment in Karnal
The people of Karnal invest in gold in two major forms:
Over-the-counter: An average Indian’s idea of investment in gold is to buy jewellery and sell it off or pawn it for loans when in need of money. Karnal is no different from other cities in following this trend. The number of jewellers and pawnbrokers in the city cater to this trend.
Market trade: Other gold-related investment options such as gold coins and bars, gold exchange traded funds (Gold ETF), e-gold and sovereign gold bonds are also exercised by the people of Karnal. These modes may not be popular yet, but those trading in stocks and bonds are slowly becoming favourable towards paper gold.
- Also Check: Gold Rate in Haryana
Also Check Gold Price in NearBy Cities of Karnal
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