Gold Price Today: Gold shines again in the domestic market, 22 carat reached ₹ 1,40,810 in Delhi; global slowdown

Despite fluctuating signals globally, gold prices continue to rise in the Indian domestic bullion market. A new surge in gold prices has been seen in the national capital Delhi due to local demand from jewelers and movement in the rupee before the festive season. In the retail market of Delhi, 22 carat gold, which is most used in jewelery making, has reached the level of ₹ 1,40,810 per 10 grams (approximately ₹ 14,081 per gram).

Whereas the price of the highest standard of purity i.e. 24 carat gold is trading at the level of ₹ 1,53,600 per 10 grams. These prices, which reached close to record levels in the domestic market, have increased the concern of customers planning to buy jewelery for weddings and upcoming festivals.

The latest gold prices based on local tax, octroi and transportation charges in various metros of the country are recorded as follows:

Note: The final retail bill amount is higher after adding making charges and 3% GST by local jewelery manufacturers.

In contrast to the domestic rise, a softening trend has been observed in the spot price of gold in the international market. In COMEX and London Bullion Market, gold was seen slipping from upper levels and trading in the red.

There are mainly two major reasons behind the global slowdown:

• Strength in dollar index: Maintaining a tight monetary stance by the US Central Bank (Federal Reserve) and the rise in the Dollar Index (DXY) have made the purchase of gold expensive for holders of other currencies internationally, leading to profit-booking by foreign investors.

• Rise in bond yields: Due to the US 10-year treasury yield remaining at high levels, funds have shifted from non-yielding asset i.e. gold to the debt market.

Despite the slowdown in global markets, local demand is the strongest factor behind the rise in gold prices in India:

• Preparation for festive and wedding season: Advance booking and physical gold inventory is being increased by bullion traders and retail buyers across the country ahead of Ganeshotsav, Navratri, Karva Chauth and Diwali.

• Rupee weakness and import costs: Import of gold in India is becoming expensive due to fluctuations in the Indian Rupee against the Dollar. With the addition of Customs Duty and import premium, domestic prices are rising, ignoring the global decline.

Customers are advised to exercise caution while investing in gold or buying jewellery:

• HUID code check: As per Bureau of Indian Standards (BIS) rules, buy only jewelery with 6 digit alphanumeric Hallmark Unique Identification (HUID) code.

• 22 carat vs 24 carat: 24 karat gold is 99.9% pure, suitable for biscuits or coins. For jewelery 22 carat (91.6% pure) or 18 carat (75% pure) is selected.

• Clarity on Bill: Enter the net weight of gold, carat, applicable making charges and 3% GST separately in the confirmed bill so that the full value can be got at the time of exchange or resale in future.