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The price of gold is on the rise in 2016. A wide range of international and national factors such as oil prices, currency fluctuations, US jobs data, interest rates, stock markets, current account deficit, economic outlook, import duties, inflation and so forth influence the price of the precious metal. Gold rates are also dependent on the supply and demand dynamics of the metal. Contraction in production may result in spike in the price of Gold. Gold rates vary across different cities in India due to the transportation costs, making and procurement costs among others.

Tuticorin or Thoothukudi is a seaport city in the state of Tamil Nadu. Tuticorin, one of the fastest growing ports in the country, is often touted as the ‘Emerging Energy and Industrial hub of South India.’ Tuticorin has a thriving fishing industry besides a thermal power plant.

Most residents in Tuticorin view the precious metal as a form of safe investment which can come to their rescue during any financial crisis.

Gold rates in Tuticorin

Gold rates are set for recovery in 2016 as evident in the increase in the gold rates across cities in India including Tuticorin. 1 gm of 24 karat gold which was pegged at Rs.2578 on December 27th, 2015, rose by 0.1% to Rs.2583 on January 8th, 2016. Gold rates rose further throughout January in that 1 gm of 24 karat gold which pegged at Rs.2663 on January 17th rose by 1.4% to Rs.2701 on January 19th. The trend continued with the price of 1 gm of gold (24 karat) pegged at Rs.2717 towards the end of January. The month of February witnessed a similar trend as the price of gold rose by 5.4% to Rs.2865. The month of March witnessed a similar trend as 1 gm of 24 karat gold touched Rs.3035. Gold rates in Tuticorin fell from July-August 2015 onwards in that 1 gm of 24 karat gold which was pegged at Rs.2723 on August 20th, 2015 plummeted to Rs.2623 and Rs.2600 in the following months of September and November respectively.

Gold Rate Trend in Tuticorin for April 2017 to June 2017 (per gram of 24 karat gold)

Gold Rate Trend in Tuticorin for January 2017 to March 2017 (per gram of 24 karat gold)

Gold Rate Trend for Tuticorin in January 2017

• Gold was priced at Rs.2,821 per gram on the 1st of January due to relatively low demand in domestic markets. This was also the lowest at which gold was priced for the entire month.
• Gold recovered slightly thereafter with gold trading at Rs.2,828 per gram on the 2nd and 3rd of January.
• Gold rate fluctuated between Rs.2,914 per gram to Rs.2,971 per gram between the 11th of January to the 18th of January.
• Due to a sharp increase in the demand for this precious metal, gold was priced at its highest for the month on the 24th of January at Rs.2,974 per gram.
• On the last day of January, gold closed at Rs.2,942 per gram, recording a rise of 4.28% in the rate of gold.

Gold Rate Trend for Tuticorin in February 2017

• On the 1st day of the second month, gold was priced at Rs.2,954 per gram and stayed steady at this rate the next day as well.
• The next day, due to a decline in the demand for this metal, the rate of gold fell to a monthly low of Rs.2,940 per gram. However, after this the rate of gold began to recover slowly.
• Gold traded steadily at Rs.2,964 per gram on the 11th and 12th of February due to stable demand for this metal.
• Gold was priced at its highest on the 24th and 25th of February at Rs.3,014 per gram. However this rate was not maintained and the price of gold fell to Rs.3,001 per gram. An incline of 1.48% was noted in gold rate as the month came to an end.

Gold Rate Trend for Tuticorin in March 2017

• The trend of gold was reversed during the month of March in Tuticorin. A number of variations were noted in the price of gold during the month due to varying demands for this metal from both international and domestic markets.
• Gold traded at Rs.2,994 per gram on the 1st of the month and this was also the highest at which this metal traded for the month.
• As the week continued, the rate of gold fluctuated.
• Due to the Dutch elections as well as the U.S. Fed’s decision regarding the interest rates, the rate of gold was at its lowest on the 15th of March at Rs.2,906 per gram.
• A marginal recovery was noted in the price of gold hereafter due to increased demand for this precious metal in domestic markets.
• As the month came to an end, gold traded at Rs.2,942 per gram on the 31st of March while recording an incline of 1.73% in the price of gold.

Gold as an investment

Gold is widely sold in the form of bars and coins in Tuticorin. Gold is viewed as a safe hedge against inflation and a conventional form of investment. There is a spurt in the demand for the precious yellow metal during festivals and weddings. Gold is considered auspicious and handed down from generation to generation in Tuticorin.

Physical Gold: Residents in Tuticorin sell various forms of traditional jewelery which are in demand. Customers can buy gold with hallmark certifications across major jewelry stores in Tuticorin. Bullion bars are also sought-after in Tuticorin as a popular form of investment. Coins are gifted during auspicious occasions.

Gold contracts: Consumers in Tuticorin invest in gold contracts at Multi Commodity Exchange and National Spot Exchange. The NSE and MCX sell gold contracts with electronic settlement mechanisms. Many prefer investing in commodity futures as they have low brokerage costs compared to stocks. The Forward Markets Commission regulates the said exchanges.