Indians are among the world’s leading consumers of gold, with the precious metal constituting a significant portion of our total imports. Indians tend to buy gold since it is considered a ‘safe’ investment. Investors study the markets for fluctuations in prices, which dictate demand.Updated On – 02 Dec 2024

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Historical Gold rate trend in India

The below chart represents the historical movement of gold prices in India:

To know the historical gold rates in India, please refer the table given below. It contains the average annual price of gold (24 karat per 10 grams) from the year 1964 to the current year. This will help you analyze the trends in gold prices in India over the years. This can help in understanding future trends which will be useful when making investment plans as well.

Gold prices in India in 2023 have fluctuated. When compared to 2022, the prices of gold have jumped significantly. Over the first six months of the year, the prices of the yellow metal have increased by around Rs.3,000, seeing a gain of almost 6.5%. The Russia-Ukraine war, US Fed rate increase, and inflation have played a role in gold rates increasing. The increase in the demand for gold has seen the equities market fall since the beginning of the year.

*The price of gold showed a fluctuating trend through the year of 2020 after opening the year on a positive note due to the COVID-19 pandemic. With the precious metal serving as a safe-haven for investors, the demand for gold increased and so did its price.

The equities market suffered during the pandemic but showed signs of recovery at the end of 2020 when the price of gold declined marginally.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.

With the exception of a few lows between some years. the table indicates 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.

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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.

Also, Check – Silver Rate Trend in India

Which factors influence the gold price in India:

There are certain factors that determine the increase in the price of Gold. We will have a look at them:

• The demand for gold plays a role in the price of gold. Gold is purchased for auspicious reasons. People tend to buy gold whenever there is a wedding, festival, or any similar festive event. Thus, the higher the demand for gold, the greater its value will be.
• The movement in global markets also determines the value of gold. The precious metal is considered to be a safe haven for investors and is less volatile. This means that oil and the dollar considered being riskier assets and certainly more volatile experience a drop in their price, then the value of gold grows simultaneously.
• Political factors, and government policy also affect the domestic price of gold in India. Similarly, any political event, or major economic change which may have global impact also plays a role in the price of Gold increasing or even decreasing.

When is the right time to buy Gold in India

You will have to keep an eye on the value of gold before deciding to buy the yellow metal for yourself. Various political events, changes in economic conditions, government policies can impact the price of Gold in India. For example, due to the outbreak of Covid-19, and the war between Ukraine and Russia may result in the price of gold rising. You can purchase gold when the price is down and sell it when its value goes up.

Gold is generally purchased so that you can take care of yourself in case you are facing a severe financial crunch.

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How is the current hallmarked gold rate in India determined? 

There is no distinction between normal and hallmarked gold rates. Nobody charges you more to get a hallmarked gold rate. It is the same price at which regular gold is sold. The only difference is that when you buy regular gold, you are guaranteed purity. Things to know about normal and hallmarked gold: 

• There is no variation in gold prices. 

• The use of hallmarking ensures purity.  
• You must transport the precious metal to the examination centers.  
• There aren’t many essay centers on the market.  
• Some have pushed for strict quality control procedures to be implemented at testing facilities.  
• There is still some distance between the town and the smaller cities.  
• The emphasis must be on the rapid expansion of the essay centers so that smaller jeweler’s may make the maximum use of them. 

How is Gold an Asset?

During troubled times, gold, the precious metal, is one of the most sought-after investments. Year after year, global investment in precious metals has increased.

Since 2001, the metal has grown at a rate of about 15% per year. Since the financial crisis rocked the markets in 2008-2009, the unique quality of the haven jewelry metal has renewed focus on effective risk management.

The shifting rate of economic growth has compelled even institutional investors to engage in this asset, which provides long-term profits. It also serves as a diversifier, mitigating losses during stock market volatility.

The precious metal is a notable liquid asset that comes in useful during stormy times. The yellow metal protects against inflation and currency depreciation. Aside from that, the metal shines when equities and debt fall in stock markets.

India, the gold-loving country, has a stronger fondness for the metal and currently ranks second in global consumption. It serves as both an investment opportunity and a luxury item. Metal’s value has increased dramatically throughout the years, making it one of the safest assets to invest in.

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Why should we invest in Gold in India?

Some of the reasons why you must invest in Gold in India are: 

• It acts as a hedge against any decline in asset types such as real estate and equities. This means it is one of the assets that offers a great possibility for diversification.  

• It also brings some relief from hard situations, especially during any financial crunch.  
• Another advantage of gold is that it is relatively liquid, making it one of the better asset classes than real estate, which is considerably more difficult to sell. 

Things to keep in mind while purchasing Gold in India

There are certain points you will have to keep in mind while looking to purchase Gold in India. These points are given below:

• Look to purchase hallmark gold – You must ensure you purchase hallmarked gold only. There are various jewelers in Bhubaneswar who sell gold to their customers and are authentic and pure in nature. Make sure the gold you are purchasing is pure.
• Check the market movement – You must be aware of the market movement before you invest in gold. In case the market is down, it can be a good time for you to buy gold. Once the price of gold goes up, you can sell your gold for profit. And also check today’s silver price in India.

Also check Today’s Gold Rate in the most popular Indian cities Today’s Gold Rate in Delhi Today’s Gold Rate in Mumbai Today’s Gold Rate in Chennai Today’s Gold Rate in Kolkata Today’s Gold Rate in Bangalore Today’s Gold Rate in Hyderabad Today’s Gold Rate in Pune Today’s Gold Rate in Coimbatore Today’s Gold Rate in Ahmedabad

Also Check Petrol Price and Diesel Price in India Petrol Price in India Diesel Price in India

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FAQs on Gold Rate Trend in India

1. What is the gold rate trend in India in 2024?Global gold markets are heavily influenced by the monetary policy and interest rates set by the US Federal reserve. Interest rates are predicted to increase in 2024, which may result in falling gold prices. There was only a marginal increase in gold prices throughout the first half of the year although it was still higher than during the Covid-19 crisis in 2020.
2. Will the price of gold decrease in the coming days?Ans: With the U.S. government pushing to release another stimulus package to combat the crisis of COVID-19, gold prices may increase in the market. However, the value of the metal keeps fluctuating as there are many factors which determine its price.
3. When was the gold price the lowest in India?If we take the average annual gold price in India in the past 10 years, from 2010 to 2020, the lowest yearly average was in 2010 when the price of gold was Rs.18,500 per 10 grams. In 2020, the average gold price in India was Rs.48,651 per 10 grams.
4. When was the highest incline seen in gold prices in India?Taking into consideration the annual average price of gold in India, the highest increase in gold prices was from 2010 to 2011 when the annual average gold price had increased from Rs.18,500 per 10 grams to Rs.26,400 per 10 grams.
5. What is 916 gold?22 karat gold 916 gold is also known as 916 gold. 916 stands for the amount of purity of gold. In this case it denotes the percentage of pure gold in 100 gms of gold, that is, 91.6%.
6. What is the difference between 22 karat gold and 24 karat gold?The difference between 22 karat gold and 24 karat gold is the amount of pure gold that is present in it. 24 karat gold is 100% pure gold, that is, it is composed of 100% pure gold. 22 karat gold, on the other hand, is composed of 91.67% pure gold. The 22 karat gold has impurities mixed with it in the form of alloy of metals like silver and copper.
7. How can I check the purity of gold?You can check the purity of gold by simply taking it to a jeweller or by examining the BIS standard mark which is present in all ornaments.

• Courtesy To: Bankbazaar

About Post Author

Lynn Jackson

aware@srvibes.com

http://www.srvibes.com

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