The chart below shows you the gold bullion rates across India for different karats of gold. The change has been depicted in both currency (rupees) and percentage change format for ease of reference.
You will notice that the rates of gold increase as the purity (karats) increase. The rates across India vary based on the demand across different markets around the country.
|Price:||` 29,732 (0.36%)|
Since early human history, gold has been considered to be a precious asset to covet and fight over. This continued well into historic times and gold in the form of coins is among the earliest known currency that was circulated for business transactions. This is not true for just India even the South American Incas coveted this shiny yellow metal with many a Spanish Conquistador risking life and limb to find the fabled Golden City of El Dorado. In fact, the Spanish conquest of South America and the access to Incan gold led to the establishment of the Spanish Armada enabling them to rule the seas for almost half a century. At the same time, the increased supply of gold in global market led to an overall decrease in the gold price.
Closer home, India was often invaded by various empires during the middle-ages as Indian temples had built up huge reserves of the metal through the centuries. After every such incident, the gold rates in India might have spiked but no historic records exist regarding this matter. One of the key reasons India had such huge gold reserves was because of international trade. Ancient Indians exported diamonds to different parts of the Roman Empire and in exchange, only imported the purest of gold and silver coins. The northwest port of Bharuch (Barygaza to the Greeks and Romans) was considered as a port of wealth as Roman merchants who came here paid in gold coins for spices, ivory, cloth, gems with a variety of other things. The coins that were traded as bullion were carefully selected based on the purity of the metal. But strangely enough, India has never boasted huge gold reserves that could be mined and though some deposits of this valuable metal still exist in temples of south India. The domestic demand is such that a major portion of the gold had to be imported and this practice continues to this day. That is the key reason why gold rates in India often fluctuate based on global cues.
As mentioned earlier, the oldest currency system was one of real currency, i.e. the value of the currency was equal in value to the amount of precious metal – gold, silver or bronze that is contained. Because of this, gold price variations would lead to significant changes in the inflation rate of the economy. Such a system based on gold rate would be subject to extreme volatility. In order to prevent such shocks, as economic systems evolved all economies shifted to a system of nominal currency i.e. bank notes and coins made from cheaper metals, which by themselves have no value but are backed by the country’s financial authority.
Even in more recent times such as the pre-1930s great depression period, the global economic system followed the gold standard, in which all economies were either directly or indirectly linked to global gold prices. The gold standard in various forms lasted from the year 1870 to the start of World War 1. As the national money supply was linked to the price of gold this gave the ability to convert the local currency readily to gold and when faced with a balance of payments issue, the country would witness an inflow or outflow of gold to balance the economic conditions domestically. In such a situation, the gold price today would greatly influence the value of the currency and this is considered to be one of the key reasons for the 1930 economic crisis. Present day economic systems are not directly linked to current gold rates and thus, price fluctuations only partially affect currency values.
One of the main reasons for the failure of this style of gold price-based economic system was the ability of the central bank to artificially control the flow of gold by buying and selling assets domestically. Additionally, central banks also had the option of artificially controlling “gold points” to regulate the flow as well as the gold rate. Another main reason why the gold standard was replaced resulted from the central bank’s ability to artificially increase/decrease the price of exporting gold and thereby the currency too could be artificially devalued or made expensive as per the economic requirement.
Over the years, countries have put in enough safeguards to ensure the price of gold does not have a direct say in the economic welfare of a nation. The impact of gold on modern economy can be easily understood by its presence across different areas in the global monetary environment, such as:
In the Indian context, the economic crisis of 1991 saw the country pledging 67 tonnes of its gold reserves with the Bank of England and the Union Bank of Switzerland to raise $600 million from the International Monetary Fund. The conditions imposed by the IMF were the primary reason why India set out on the road to liberalisation by instituting various reforms to generate more investments and ease the process of doing business.
As a result of the failure of the gold standard methodology and the Breton Woods Accords, most countries moved towards a deficit financing model, wherein, the central bank would print money and mint coins that are backed by an equivalent amount of gold as well as foreign currency. In this case too, the central bank would have to closely watch the price of gold in order to ensure that the currency does not devalue so much that there is hyperinflation. One of the most recent cases of hyperinflation occurred in Zimbabwe, where, prices of goods and services increased by as much as 400%, while there was no appreciable increase in the actual amount of money earned by individuals. In such cases, the country can choose to either change the value at which the currency is traded globally or use a different currency altogether.
Deficit financing is the excess of expenditure over revenue and this gap is covered by borrowing money from public by the sale of bonds and generating new money. According to the National Planning Commission of India, deficit financing denotes the direct addition to gross national expenditure through budget deficits whether they are on revenue or on capital account. Deficit financing in India is covered by raising taxation and increasing the prices of goods and services. It is also met by the cash reserves or borrowing from the banking system. Here, the government covers current budget deficit by withdrawal of cash reserves and borrowing money from RBI. When the cash reserves are withdrawn the cash becomes active and comes into circulation. In the case of borrowing money from RBI, the loan is given by printing additional currency. And in both the cases, the new money comes into circulation. Deficit financing has several economic effects that are correlated in many ways. It closely affects the inflation, capital formation, income distribution, and economic development of the country.
Quite a few factors are responsible for affecting the gold prices whether positively or negatively. The following are the 10 major reasons why gold price today is different from that it was 10 years or even 10 days ago.
Industrial Uses and Jewellery - Gold is unique because of its inert nature as well as its high ductility, electrical conductivity, and malleability. The combination of these unique features, make it an ideal choice for multiple industrial applications such as circuit boards for mobiles, GPS, and computer systems as well as heat sinks and various medical devices. As our consumption of cutting-edge products increases, so does the demand for gold thus prices heads up. Conversely, lower demand for these high-tech products could potentially drive gold prices down.
It is estimated that in some countries like India and China, close to 50% of the domestic demand results from the jewellery industry. Thus during festivals like Diwali/Dhanteras and Chinese New Year, the demand increases manifold leading to significant price increases. Moreover, in India, many people buy gold as a safety net for hard times that might befall them in the future so as average income has increased, so has gold demand leading to a spike in overall gold rates.
In India, gold has long been associated with wealth and prosperity and the metal has also been considered the perfect gift for festive and a variety of religious occasions such as marriage ceremonies. Traditionally, investing in gold has always been considered safe as gold prices have historically gone up over a period of time and they are considered to be easier to liquidate as compared to other assets such as property hence, a preferred investment option during difficult times.
Rural India deserves a special mention as it accounts for nearly two-thirds of the total demand for gold in India. However, demand in rural India has been a bit bleak owing to inflation and decreased wages, compounded by demonetization. In India, about 8% of savings of rural households go towards buying gold, primarily jewellery. So, any impact on wages (especially the one triggered by demonetization) has dampened the demand for gold. Further, demand will pick up only after incomes stabilize and more currency is available in the market.
Gold has always been considered a good investment in India. Due to gold investments being considered as a hedge against hard times, Indians have historically chosen to maintain at least a portion of their assets in the form of gold as they could easily be liquidated in case of emergencies in comparison to land estates and other property. Gold is also much easier to transport if it was necessary to move assets from one location to another in hurry. Traditionally gold investments in India have been made mainly in the form of jewellery. However, gold bullion i.e. bars as well as coins, have also been considered in recent times from an investment perspective.
Common Formats for Gold Purchase in a Physical Form
Physical gold usually available in 24 karat (purest), 22 karat (jewellery grade), 18 karat (less precious) variants may be purchased in a variety of forms such as:
The amount of money received at the time of liquidation for these paper/demat instruments would be affected by the prevailing price of gold in domestic/global markets.
Commodities trading are a relatively new development in India and gold is one of the key commodities that are being traded in India’s commodities exchanges. You can carry out gold trading through any of the three dedicated commodities exchanges – National Multi Commodity Exchange of India Ltd., Multi Commodity Exchange of India Ltd. and the National Commodity and Derivative Exchange. All three exchanges have a pan-India presence and offer electronic trading/settlement systems. Being a separate entity, the exchanges are regulated by the Forward Markets Commission.
The commission advises the Central Government on matters such as giving or withdrawing recognition to any association. It collects and publishes information about the prices, and supply and demand of any commodity or goods including gold. The commission also has the power of deemed civil court for receiving evidence on affidavits and requisitioning for discovery and production of any related document. Commodities exchange brokers are not required to register themselves with a regulator.
An individual who wants to invest in commodities can start with an investment corpus as low as Rs. 5,000 and the trades may be completed without having a demat account either. However, a dedicated commodity demat account from the National Securities Depository Ltd. is mandatory for trades on the NCDEX similar to stocks. The individual also has to go under a normal account contract with the broker and provide details such as PAN card no. and bank account no. to complete the process of identification.
MCX India trades in the futures of gold as well as a range of commodities and also in energy futures. Currently, MCX offers multiple gold futures contracts options for the interested investors:
In the following table, we will compare some key criteria of the available gold futures contracts options on the MCX:
|Futures Type||Trading Limit||Max. Order Size||Base Price Limit||Tick Size||Initial Margin|
|Gold||1kg||10kg||3%||Re. 1/10gms||Min. 4%|
|Gold Mini||100gm||10kg||3%||Re. 1/10gms||Min. 4%|
|Gold Guinea||8gm||10kg||3%||Re. 1/8gms||Min. 4%|
|Gold Petal||1gm||10kg||3%||Re. 1/gm||Min. 4%|
|Gold Petal (New Delhi)||1gm||10kg||3%||Re. 1/gm||Min. 5%|
|Gold Global||100gm||10kg||3%||Re. 1/10gms||Min. 5%|
Before selling your gold, there are a few dos and don’ts that one will have to follow in order to get the most bang for the buck when finally selling off their gold assets in physical form.
To measure the purity of gold, the unit “Karat” is used. The higher the value in karat, the more pure that gold is. Let’s take a look at the different varities of gold interms of their karat value:
There are multiple ways of checking purity of gold in India:
Before buying gold in India, ask the following questions:
Is gold BIS-hallmarked?
It is absolutely essential that you buy BIS-hallmarked gold. India has close to 14,000 BIS-hallmarked jewellery showrooms and approximately 330 hallmarking centers recognised by BIS.
What is the per gram price of gold?
As price of gold changes with every city and every day, do check the gold rate on the day you intend to buy gold jewellery. It is important to check gold prices today in order to ensure you are getting the optimum value from your jewellery.
How much gold are you getting for your money?
When buying gold jewellery several additional charges are also levied, such as making and wastage charges. So, before making payment, ensure that you know the worth/value of the gold you are buying.
Ques. Why Gold Rate is Different in Several Cities in India?
Ans. Though gold rates are mainly influenced by global cues, in India multiple factors are responsible for affecting the current gold rate in various Indian cities. Some of the key reasons why gold rate is different in various cities across India are –
Local Taxes – The local tax rates for each state differ and this can result in a big reason for the difference in gold rates across several big cities in India. However, the hopes for unified taxes are high because of the GST.
Gold Associations – Local gold associations have it in their power to fix gold rates. This happens twice a day. It is especially true for larger cities such as Mumbai and Chennai and this changes the price of gold from one city to another.
Volume Play – Like all commodities, purchasing gold in large volumes is bound to cause a corresponding decrease in prices therefore in larger cities where larger volumes are purchased, gold prices tend to be lower.
Transportation Costs – Probably the least important factor, but transporting gold from one location to another requires special security arrangements and such expenditures could potentially affect gold prices locally.
Ques. What is the Difference between Carat and Karat?
Ans. The word “carat” is a measure of mass, wherein, 1 carat equals 200 mg. Normally, diamonds and gemstones are measured using this measure and higher the carat value, greater the price of the gemstone. Karat on the other hand, is a measure of purity with respect to gold and common karat values are 24 karat, 22 karat, 18 karat and so on.
Karat: Gold is one of the soft metals and it needs to be added with different metal alloys to make jewellery. Usually, alloys like copper, zinc, and nickel are used for this purpose. A 24 karat rating denotes that the gold has the least form of alloys in it, while a 12 karat indicates that it has a 50% ratio of alloys in it. Also, any gold less than 10 karat is not considered gold at all. In India, the most preferred form of gold is 22 karat.
Carat: It is the weight of the precious stones and pearls and especially used for weighing diamonds. One carat is equal to 200 mg, also written as 0.2 gm in some places. This measurement is based on the popularly used metric system.
Ques. What is the Difference Between 18K, 22k and 24k Gold?
Ans. As per karat values, 24k, 22k and 18k are the common types of gold available in the market in the order of decreasing purity. 24 karat gold is in fact only 99.99% pure, as at 100% pure gold is extremely malleable and impossible to shape into bars, coins, etc. 22k gold is approximately 91.67% pure and contains 2 parts of additives like copper, silver, etc. along with 22 parts of gold to provide the required hardness for making jewellery. Similarly, 18k gold is even less valuable with 18 parts of gold being combined with 6 parts of other precious and semi-precious metals.
Ques. Why is gold considered so valuable?
Ans. The primary reason that drives the value of gold is its rarity. Though several thousand metric tonnes of gold have been mined through the centuries, gold constitutes only a fraction of the quantity of metal in circulation today when compared to more common metals like iron and aluminium. The other factor that affects the pricing of gold is the cost of manufacturing and purifying it. Due to its rarity, extreme care is taken when gold is purified so that losses are minimised and at the same time, only small quantities of gold are purified at a single go, which drives up the unit pricing (per gram pricing) of this precious metal. Gold has some financial advantages as well such as –
Ques. How much is one tola gold?
Ans. Use of Karat as the unit for measuring gold is a recent phenomenon. In ancient India, gold was measured in tolas. One tola is equal to 11.66 grams.
Ques. How is gold brought into India?
Ans. As mentioned in the beginning, India has miniscule gold reserves and depends largely on the global commodities market to meet its demand for the yellow metal. The country’s central bank gets the gold imported and divides it among distributors who, in turn, supply it to large retailers or jewellers.
Ques. Why gold always retains its value?
Ans. Gold will always retain its future value because it is the ultimate form of money. People have valued gold since the beginning of civilisation despite innumerable changes in the socio-economic and political structures across the history of mankind. The value of gold has never been zero and it has never defrauded an investor. Human civilisation understands the value of gold because we have chosen it and history has proven its zero counterparty risks.
Ques. How to buy gold bullion?
Ans. Gold bullion or gold in the form of coins and bars may be bought by an individual investor in India through leading jewellers as well as selected banking organisations. In case of 24k gold bars, the purchase denomination ranges from 5 gm to 100 gm and these are provided along with a certificate of purity through selected bank branches and jewellery stores across India. The limited availability and high investment volumes with regards to gold bars make these a preferred choice for serious investors. However, gold bars are not accepted by banks and NBFCs as security for a gold loan.
Gold Coins: Gold coins are relatively more common and thus more accessible to the general public. The purchase denomination, in this case, ranges from 2 gm to 50 gm for 24k gold coins. Though traditional channels of purchase for gold coins have been through banks and jewellery stores, online purchase of gold coins in India is catching up fast. Some online portals such as Snapdeal, PN Gadgil, and FINCO India offer 24k BIS hallmark gold coins through online transactions. A number of banks in India offer gold loans using 24k gold coins of up to 50 gm as collateral.
Contracts: These are the options where people have a delayed access to the actual bullion. Spot contracts and future contracts are available from MCX, NCEDX, Bullion India and RSBL, in addition to others. However, spot contracts are subject to market volatility and they are delivered immediately whereas future contracts offer protection against market volatility but come with delayed deliveries.
Ques. How much is an ounce of gold worth today?
Ans. Ounce, also known as troy ounce, is an imperial measure of gold that equals 31.1035 grams of gold. As gold prices change daily and differ from one city in India to another, the price of an ounce of gold would also vary accordingly. Thus if the price of gold today is Rs. 3,000 /gram, then, an ounce of gold would be worth Rs. 3,000 x 31.1035 = Rs. 93,310.50. However, the same ounce of gold could be worth slightly more or less tomorrow depending on the change in the price of gold.
|Gold Prices Strengthen as US FED Rate Maintains Status Quo|
02 Feb, 2017 - After release of disappointing growth of 1.9% for the US Economy data last week, the proposed FED rate hike for February was not implemented. The poor growth data coupled with worries related to the direction of new US President Donald Trump’s policy measures weighed heavily on US markets. As almost always happens, the drop in equities and uncertainties leads investors to start investing in safe havens and gold is one of the top choices in this regard. The increased inflow of money in gold led to an increase in the price of gold not just in global markets but also in India. In early trading gold rate rose to Rs. 42,180/kg indicative of a 0.69% increase within the first hour of markets opening. As per experts, stagnant FED rates would lead to gold prices remaining high for the foreseeable future.
|KYC Documents to become Mandatory for Gold Purchase|
31 Jan, 2017 - As part of the Budget 2017 countdown, it is expected that KYC documentation such as Aadhar or PAN card will become mandatory for gold/silver purchases over Rs. 50,000 at all jewelry stores. As per current rules, only higher purchases of Rs. 2 lakhs required this level of compliance at the jewelers. The possibility of this lower limit for KYC requirement has been put forward by experts with close knowledge of the industry. The move is expected to be part of the government’s plans to crackdown on black money, which also included the demonetization of the old Rs. 500 and Rs. 1000 bank notes. The main impetus to implement this would stem from the observation that silver and gold prices reached record highs after the note ban announcement as many black money hoarders supposedly converted their unaccounted wealth to bullion such as gold and silver. As per expectations, accepted KYC documents for high value purchase would include PAN card, Aadhar card number as well as Kisan Credit Card for those residing in India’s rural areas.
|Weaker Dollar Leads to Gold Price Rise|
31 Jan, 2017 - Just 10 days in office and newly elected US President Donald Trump signed an executive order that has led to wide spread protests in the US as well as around the world. Though the jury is still out regarding the legality of the executive order, the unexpected move, along with the unpopularity it has garnered for the new administration, has led the dollar to slip in value vis-à-vis other major currencies. As is almost always the case, the decline in dollar, as well as the market turmoil as a result of the unexpected announcement, has led investors scrambling to invest in the safe haven i.e. gold. This led gold prices to register a sharp rise on the futures market not just in the US exchanges but also globally. Additional factors that are expected to play a key role in the rising gold prices in the US and beyond include lower-than-expected US economic growth figures, lack of policy clarity with respect to the Trump Administration and the probable timing of the US Fed rate hike.
|Gold Trumps Dollar Spurred by Travel Ban|
30 Jan, 2017 - Within a week of assuming his role as the President of the United States, Donald Trump’s announcement regarding imposition of a travel ban on citizens of Muslim majority countries has started to affect markets. Primarily, the fall out of the announcement has been public outrage in various US cities, which sent the dollar plummeting against other key global currencies. Investors feeling that the good times of equity markets had come to end, decided to start buying gold. This has stimulated gold prices to a large extent and gold closed much higher than it opened in Monday’s European morning trade. Gold futures on the NY Mercantile Exchange closed at $1,193.45. Another major factor giving impetus to global gold prices is the lackluster growth figure prediction of 1.9% for the final quarter.
|Demonetisation leads to Gold Prices Slide|
25 Jan, 2017 - In the first few days after demonetisation, gold prices were at record highs boosted at least in part by run by some individuals to use up their banned bank notes. However, the picture seems to be a bit different with domestic gold prices witnessing at least in the short term. But it is expected that the transparency generated by demonetization would lead to less volatile gold prices in India over the long term. The key benefit expected for customers is the fact that the previous opaque system of gold pricing will be done away with, which will ensure fair trading of gold across the country. Additional measures that are expected to play a key role in ensuring the transparency include push by organised jewellers to accept digital payments, mandatory hallmarking, GST, 1% excise and PAN card for buying gold in excess of a specified value.
|Gold Rate Scales New Highs|
23 Jan, 2017 - The gold price in India, once again rose on Monday amidst concerns regarding uncertainties surrounding the election of Donald Trump. Trump’s economic policies are the topic of discussion among experts and investors alike and the resulting uncertainties have forced investors to make “safe” investments. As of Monday morning, spot gold prices rose to $1217/ounce, while the dollar fell by 0.4% against other major currencies. As a result of the continued uncertainty surrounding Trump’s economic policies after assuming office, gold futures are expected to remain bullish in the near future.
|Prospective buyers wait for lower gold prices after budget|
19 Jan, 2017 - As the budget comes closer, some individuals are waiting for import duty on gold to be decreased so that they can invest in fold at cheaper rates. This stems from the fact that the industry has demanded a decrease in import duty on gold to 6% from the current 10% level. Jewellers believe that this decrease would play a key role in boosting customer demand and thereby provide a positive outlook to the business. Additionally, if Budget 2017 does decrease this import duty, gold imports would increase, while at the same time gold smuggling would decrease which means more money in the governments’ coffers. There is also additional expectation that more agencies would be allowed to import gold rather than being restricted to few nominated agencies and banks.
|Gold prices rally despite Trump's positive effect on equity market|
18 Jan, 2017 - Gold rates witnessed less volatility in global market as equity market outlook continued to remain positive with Trump all set to take office. Gold prices settled at a level just lower than the previous 8 week high. The equity rally in global markets is a result of Trump’s election and the belief that his policies would help the cause of economic recovery in the US economy, which is considered to be a bell weather for global markets. Despite the Fed rate hike that is expected, the gold prices closed at $1218.90 on Tuesday.
|MMTC to Sell Gold Through E-tailing Websites|
17 Jan, 2017 - MMTC PAMP will now be selling its minted gold coins and bars through electronic marketplaces. The company has already tied up with e-tailing major Amazon. It is planning to do more tie-ups as the investment demand for gold in India is expected to increase in 2017. The MD of MMTC PAMP said that the e-tailing space will help them make the transactions transparent and increase the convenience for the customers in the demonetized scenario. Also, as returns on traditional investment instruments are falling, more people are looking to opt for gold as an investment option owing to the good returns it offers over a period of time.
|Duty on Gold Imports Might be Reduced|
|15 Jan, 2017 - Speculation is rife that the government will reduce import duties on gold in the Budget 2017. Because of this expectation, gold futures prices for February are trending 1.8% lower than gold spot prices. At the time of market closing on Friday, 13th January, gold was priced at Rs 28,890 per 10gm. It is believed that owing to the crackdown on black economy and fall in imports, the government might align duty on gold with the proposed GST rate of 4%-6% for precious metals.|
|Fed Rate Increase Possibility puts Downward Pressure on Gold Prices|
|10 Jan, 2017 - After continued increase over the past couple of months, gold prices declined this week as news broke regarding imminent Fed rate hike. A similar fall in price was observed after Trump became and was declared the new president elect of the US. The earlier 12% decline in gold price was result of heavy gold ETF selling as investors ditched gold in favour of equity which were buoyed up by Trump’s victory. This recent decline is also following a similar pattern as a rate hike by the US Federal Reserve points to a probability of increased inflation as well as the American dollar. The general favourable outlook that Trump will enact new measures that would revamp tax policies and increase government spending are also among the key factors exerting a downward pressure in global gold prices.|
|Gold prices post a small hike|
|9 Jan, 2017 - With possible rate hikes to be announced by the US Federal Reserve, the movement noted in gold prices inched up further this week. However, the rise was not very significant compared to the weekly increase we saw last week. Gold prices had risen by 2% last week, recording the highest weekly increase since November 2016. Compared to that, this week’s 0.2% hike seems rather paltry. Spot gold rose to $1,174.91 an ounce (1 ounce = 28 gm). Silver, on the contrary, dropped by 0.1% to cost $16.46 an ounce.|
|Dip in Global gold prices from one-month high|
6 Jan, 2017 - The jubilation over the 4-week high touched by the yellow metal ended much before it even began. Gold prices declined to Rs 28,710 per 10 grams (down by Rs 20) from the previous day. The decline could be due to dip in demand from local jewelers and overall weak global activity. Globally, gold prices registered a fall of 0.58% settling at $1,174.50 per ounce.
Gold prices perform opposite to dollar. A strong dollar means lower gold prices and vice versa. Analysts believe in the run up to Donald Trump’s inauguration, dollar will strengthen further on the back of possible interest rate hike in the US. Similar trend was seen in silver prices as well. Prices fell sharply by Rs 500 to settle at Rs 40,100 per kg. The trend was not reflected in the prices of silver coins though.
|Gold touched a near-4 week high as demand increases|
5 Jan, 2017 - On Wednesday, gold prices globally rose to a near 4-week high after the dollar declined from a 14-year peak and the demand for gold increased from major consumers, such as India and China. Prices for spot gold reached their highest since Dec 9 at 0.6% to settle at $ 1167.52 an ounce. US gold futures too were up by 0.4% $ 1,166.20 an ounce.
The price for gold is inversely proportional to dollar’s strength. If dollar is weak, then prices for gold (rather, commodities valued in dollar) almost automatically increase. Therefore, as currently, dollar index has fallen from its highest level since late 2002, gold prices are on a high. Analysts have cited other reasons as well for the increase in gold prices. First, with the Chinese New Year approaching, there will be more demand in the country for the metal. Second, due to the ongoing cash crunch here in India, more people will take to stocking up on gold. Silver prices hit a near-three week high in the last session after it rose by 1% to $16.42 an ounce.
|Gold Rises to Three-week High|
4 Jan, 2017 - Witnessing a three week high on Tuesday, gold rates were up by 1%. Many investors who had earlier invested in stocks that were perceived risky liquidated their investments and used the proceeds to purchase gold as a hedge against economic uncertainty. Spot Gold prices rose by 0.6% $1,159.06 an ounce while the US gold was up by 0.9% at $1,162. Gold rates slid by more than 12 % in the fourth quarter post Donald Trump’s victory in US presidential Elections of November.
* Disclaimer : The gold price given in this site is provided by sources which we consider are authentic and reliable. We have made every effort to make sure the gold price shown here are accurate. However, this data is intended for information purpose only and should not be considered as investment advice. We accept no liability for any loss arising from the use of the above data. Please contact your investment advisor before making investment decisions.