Factors Affecting Gold Prices

by Baijnath Pardhan consultant

Whether it is for jewelry purposes or buying gold biscuits, gold has always acted as a medium investment in people's lives. However, one should not visit a shop and buy something made of gold at once. He/she should consider all the factors that affect his/her investment regarding today's gold rate.


Gold is considered to be one of the vital assets in India along with the investment made on it. In case of any occasion or festival, people love to wear gold jewelry as they think the jewelry can complement their look. However, the prime factor behind buying gold jewelry is to make a lifetime investment. Here is a list of aspects that have a solid effect on the gold price.


Effect of Global Movement of Indian Gold Market


Gold price is not only dependent on the Indian environment as the things happening across the globe has an impact on the gold market. Whether it is the election of the US or the political condition of the UK, the gold market is regulated by various international crises or movements bringing changes in today's gold rate.


     US Election - In 2017, at the time of the US presidential election affected the economic development of the countries, leaving a mark on the gold the market of India. The promises towards the tax reformation shook the international economic market showing drastic changes in the price of today's gold rate in India.


     Brexit - The impact of Brexit has been envisioned in every sector of the world and the international economic market is no exception. Due to the split of Great Britain from the European regions has influenced to renegotiate the terms of trade and several trade agreements have been changed. This is one of the causes leading to a price change in today gold rate 22k in the global market.


     Trade Conflict - The officials of the US have raised concerns regarding the undervaluation of the currency against Japan, China, and Germany. Now, this can affect the trade market leading to show changes in today gold rate as well.


     Geopolitical Tension - The growing conflict in South China, Syria, and Ukraine has indicated that global terrorism is yet to be diminished. This possesses a threat to the global gold market increasing the price of today gold rate for India gradually.


Value of US Currency in the Indian Market


US dollar is considered while trading the goods in the international market. The main reason behind the increase of today's gold rate list is that today gold rate across the globe is corrected. A few months back, there was drastic depreciation in the rupee against the US currency which was near 8% and led to a change in the gold rate today per gram.


     As per the report from 2011, it is seen that India is the leading country that consumes gold most.

     The today gold rate price is rapidly changing in India as India consumes almost 933 tonnes out of 4,607 tonnes from the global market.

     The currency in which the gold is traded in the market is the US dollar and today gold rate per 10 gram in Indian the environment is based on the conversion of currency.

If today gold the rate for gram would be much lower in the international market if you wished to sell it there. The reason behind this is the depreciation of the Indian currency and increases today's gold rate here.


Production of Gold


Like money, gold does not grow in the tree and only 2,500 metric tonnes of gold are produced every year. However, there is a need for 165,000 metric tonnes of gold across the globe. Now, you can only guess how precious this material is and why today's gold rate increases rapidly. Supply costs are one of the factors that influence production.

     If the cost of gold production goes higher, the gold miner can sell the gold for earning more money. This can lead to a change in today's gold rate.

     There is no other material that can be as precious as gold and this indicates that even though during fluctuating price of gold rates in India, people seem to be clueless about buying any other metal.

     When people feel threatened by the governmental economic policy or sense the global crisis, people tend to invest in today's gold rate.

     Even during the ups and downs of the economic market, people invest in gold as it is one of the most secure investment procedures.


According to the latest reports, today gold rate of 22-carat has been around 27,000 rupees. Now you can understand that the jewels are not responsible for deciding the price as there are several factors behind the price molding the gold market. Today gold rate with GST has made certain changes in the gold rate details that people know before investing.

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About Baijnath Pardhan Freshman   consultant

5 connections, 0 recommendations, 35 honor points.
Joined APSense since, March 30th, 2016, From Gurgaon, India.

Created on Oct 3rd 2020 10:38. Viewed 392 times.


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