We Indians are the largest consumers of gold in the world, there is no other population in any other country that has a demand for gold as strong as ours. In fact, gold constitutes 12.50% of our total imports (in FY 2012-2013), which is a whopping $61,409 million.
Fluctuations in prices affect the purchasing behavior as a lot of Indians buy gold as a “safe” investment. Gold is viewed as a commodity by those who invest in it, and these investors constantly watch the market for fluctuations that could mean a potential profit, or the possibility of acquiring the asset at a lower price.Credit Score of 750 = Easy approval on Loans/Credit Card! Check now in less than 3 min!Check for FREE
Historical gold rate trend in India
The below chart represents the historical movement of gold prices in India. It’s important to note that the gold prices would fluctuate during the year and the amount mentioned below is a representation of the average price for that year.
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| Year | Price | Year | Price |
| 1964 | Rs. 63.25 | 1991 | Rs. 3,466.00 |
| 1965 | Rs. 71.75 | 1992 | Rs. 4,334.00 |
| 1966 | Rs. 83.75 | 1993 | Rs. 4,140.00 |
| 1967 | Rs. 102.50 | 1994 | Rs. 4,598.00 |
| 1968 | Rs. 162.00 | 1995 | Rs. 4,680.00 |
| 1969 | Rs. 176.00 | 1996 | Rs. 5,160.00 |
| 1970 | Rs. 184.00 | 1997 | Rs. 4,725.00 |
| 1971 | Rs. 193.00 | 1998 | Rs. 4,045.00 |
| 1972 | Rs. 202.00 | 1999 | Rs. 4,234.00 |
| 1973 | Rs. 278.50 | 2000 | Rs. 4,400.00 |
| 1974 | Rs. 506.00 | 2001 | Rs. 4,300.00 |
| 1975 | Rs. 540.00 | 2002 | Rs. 4,990.00 |
| 1976 | Rs. 432.00 | 2003 | Rs. 5,600.00 |
| 1977 | Rs. 486.00 | 2004 | Rs. 5,850.00 |
| 1978 | Rs. 685.00 | 2005 | Rs. 7,000.00 |
| 1979 | Rs. 937.00 | 2006 | Rs. 8,400.00 |
| 1980 | Rs. 1,330.00 | 2007 | Rs. 10,800.00 |
| 1981 | Rs. 1,800.00 | 2008 | Rs. 12,500.00 |
| 1982 | Rs. 1,645.00 | 2009 | Rs. 14,500.00 |
| 1983 | Rs. 1,800.00 | 2010 | Rs. 18,500.00 |
| 1984 | Rs. 1,970.00 | 2011 | Rs. 26,400.00 |
| 1985 | Rs. 2,130.00 | 2012 | Rs. 31,050.00 |
| 1986 | Rs. 2,140.00 | 2013 | Rs. 29,600.00 |
| 1987 | Rs. 2,570.00 | 2014 | Rs.28,006.50 |
| 1988 | Rs. 3,130.00 | 2015 | Rs.26,343.50 |
| 1989 | Rs. 3,140.00 | 2016 | Rs.28,623.50 |
| 1990 | Rs. 3,200.00 | ||
With the exception of a few lows between some years, it can be seen from the table that the gold price trend has historically been on the rise, lending credit to the argument that gold is a safe investment over long periods of time.
Studying the gold rate trend in India
Studying the gold rate trend in India could offer an insight into future fluctuations and investment plans can be made accordingly. The gold rate depends on a number of factors like the stability of the central bank, the supply and demand of gold in the market, quantitative easing, government reserves, the health of the jewellery industry and overall yearly production to name a few.
In 2016, the lowest price recorded was Rs.24,910 per 10 grams on January 1st 2016. Gold prices soared to Rs.32,336 per 10 grams on 6th July 2016, the highest price recorded for this year. In the first half of the year, gold performance was low but showed an upward trend in the second half. The main events that affected gold rates this year included the jewellers strike against strike PAN card regulations, the Brexit vote, the expectations of an interest rate hike by the U.S. Federal Reserve, the festive and wedding seasons, Trump’s win in the U.S presidential elections and PM Modi’s demonetisation scheme.
Also Know About: Gold Rate Outlook For India In 2016
Read more on Gold
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- Reasons Why Gold Rates Fell Since February
- Why Is Gold Rate Fluctuating
- Why Investing In Gold Is A Golden Opportunity
- How Gold Rate Fluctuation Affects Indian Economy
- Top 8 Reasons to Invest in Gold
- How Does Gold Investment Affect Indian Economy?
- How Will Restricting Gold Imports in India Affect Gold Rates?
- Tax on Gold 2016
- Is Buying Gold a Good Investment in 2016
- Top 5 Factors That Affect Gold Rate In India
- Why Gold Prices Are Up
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News About Gold Rates
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As dollar plunges, gold hits two week high
Price of gold jewellery in Dubai traded higher on Monday due to the fall in the value of the US dollar after the recent adjustment in the rate by US Federal Reserve. The bullion traded by as much as Dh10 per gram as compared to the prices at the beginning of the year with 24k gold trading at Dh 149.50 per gram.
Spot gold increased to its highest in a span of 2 weeks at $1,234.60 prior to settling at $1,233.60. Certain analysts believe that gold will continue to be supported with spot gold price ranging between $1,220 and $1,240 per ounce.
20th March, 2017
