There has been a sudden sharp rise in the prices of yellow metal i.e. gold in the Indian domestic bullion market. During the last one week's trading sessions, a huge increase of about ₹ 3,490 per 10 grams has been recorded in the price of 24 carat pure gold. With this stormy rise, the price of 24 carat 10 gram gold in the retail markets of the country is trading in the historical range of ₹ 1,53,000 to ₹ 1,55,000. While this sharp rise in gold prices has brought happiness to the faces of investors and Gold ETF holders, it has also directly impacted the budget of common consumers planning to buy jewelery for the upcoming festive and wedding season. Not only 24 carat, but the price of 22 carat and 18 carat gold used in making jewelery has also seen a huge jump in the same proportion. According to data from All India Bullion and Jewelers Association (IBJA), retail markets have seen strong buying support for the third consecutive trading session. 0.9% rise in global markets: Why did prices rise from COMEX to spot market? The main thread of this boom in the domestic market is linked to the international commodity markets. Globally, spot gold in the American futures market COMEX and London Bullion Market was seen trading with a weekly gain of about 0.9 percent in the last trading sessions. In the international market, gold prices have reached very strong and record resistance levels of $2,480 to $2,520 per ounce. The fall in US bond yields, weakening of the Dollar Index (DXY) and strong signals of upcoming interest rate cuts by the US central bank 'Federal Reserve' (US Fed) are mainly responsible for this 0.9% rise in the global market. Whenever the US dollar weakens or the possibility of interest rate cuts increases, international investors increasingly turn to gold as a safe-haven asset, which directly impacts the prices of major importing countries like India. Today's latest price in major metros: Rate card of Delhi, Mumbai, Lucknow and Chennai There is a slight difference in the retail prices of gold in different states and cities of India depending on the local VAT, octroi tax and transportation cost. The latest prices of 24 carat and 22 carat gold in the major metros of the country have been recorded as follows: Delhi: In the bullion market of the national capital Delhi, 24 carat pure gold has reached the level of ₹ 1,53,030 per 10 grams and 22 carat jewelery gold has reached the level of ₹ 1,40,290 per 10 grams. Mumbai: In the country's financial capital Mumbai, 24 carat gold remains stable at ₹ 1,52,880 per 10 grams and 22 carat gold at ₹ 1,40,140 per 10 grams. Lucknow: In Uttar Pradesh's capital Lucknow, 24 carat gold is being sold at ₹ 1,53,030 per 10 grams and 22 carat jewelery gold is being sold at ₹ 1,40,290 per 10 grams. Chennai: Due to local demand in Chennai, the major jewelery market of South India, 24 carat gold has been recorded at ₹ 1,53,030 per 10 grams and 22 carat gold at ₹ 1,40,290 per 10 grams. Kolkata: In Kolkata, the metropolis of West Bengal, 24 carat gold is trading at ₹ 1,52,880 per 10 grams and 22 carat gold is trading at ₹ 1,40,140 per 10 grams. 5 major reasons for the sudden rise in gold: Geopolitics, buying of dollar and central banks Commodity and financial market analysts have highlighted 5 major geopolitical and economic factors behind the surge of gold to record ₹ 3,490 this week: Geopolitical tensions in the Middle East: The growing diplomatic and military standoff in West Asia and the Strait of Hormuz region has increased uncertainty in global trade. In times of such crisis, global investors are withdrawing capital from equities and risky assets and investing in safe gold. Signs of interest rate cut by the US Federal Reserve: The probability of cutting interest rates by the Federal Reserve has increased to more than 90 percent after the US labor market data and inflation came under control. Non-interest yielding assets like gold become more attractive when interest rates fall. Huge Gold Reserve Accumulation by Central Banks around the world: Central banks of many countries, including the People's Bank of China (PBOC), Reserve Bank of India (RBI) and Turkey, are continuously buying record amounts of physical gold to reduce their dependence on the US dollar in their foreign exchange reserves. Fluctuations in the Indian Rupee: Depreciation in the exchange rate of the Indian Rupee (INR) against the US Dollar makes gold imports costlier for India, which automatically increases the rates per 10 grams in the domestic spot market. Upcoming Festive and Wedding Demand: In view of preparations for Rakshabandhan, Ganeshotsav and the upcoming wedding season in India, buying by local jewelers and retailers to prepare bulk inventory has also pulled up the prices. Strong shine in silver too: Price reached near ₹ 1.75 lakh per kg. The direct impact of this stormy rally of gold is also visible on the prices of silver. Silver prices have also increased by ₹ 2,500 to ₹ 3,000 per kg on a weekly basis due to the continuous increase in industrial use of silver, especially in the manufacturing of solar panels, electric vehicles (EV) and semiconductor chips. The price of pure silver in the domestic market has reached the level of ₹ 1,70,000 to ₹ 1,74,000 per kg. Active silver futures contracts on the Multi Commodity Exchange (MCX) are witnessing heavy trading volumes. Analysts believe that if the pace of global industrial production continues, silver has the potential to give higher percentage returns than gold in the coming months. Important Guide for Buyers and Investors: Hallmark (HUID) and Purity Identification If you are going to buy gold jewelery or coins in these high price times, then keep these important points in mind to ensure complete safety and purity of your money: 6-digit HUID Hallmark Mandatory: As per Bureau of Indian Standards (BIS) rules, it is illegal to buy or sell gold without a 6-digit alphanumeric HUID (Hallmark Unique Identification) code. While buying jewellery, check the BIS logo, karat purity (like 22K916 or 18K750) and 6 digit unique code with a magnifying glass. Do your own verification on 'BIS Care' app: By downloading the official 'BIS Care' app on your smartphone, you can verify its purity, date of manufacture and jeweler's registration in seconds by entering the HUID number written on the jewellery. Avoid raw bill and get GST bill: Always get a confirmed bill with 3% Goods and Services Tax (GST) clearly mentioning the exact weight of gold, making charges and price per gram. Alternatives to digital gold and gold ETFs: If your objective is only to earn profits by investing, then invest in Sovereign Gold Bond (SGB), Gold ETFs or gold funds of mutual funds instead of buying jewellery. There is no harm in making charges of 10 to 20 percent and reduction in purity. Market's further outlook: Will 10 grams of gold cross ₹ 1.60 lakh? According to bullion experts and technical chart analysts, the medium to long term structure of gold remains extremely strong (bullish). The level of ₹1,50,000 has been established as a very strong support zone on MCX. If geopolitical tensions continue internationally and the US Federal Reserve starts cutting rates as anticipated, 24 carat gold in the domestic market may touch a new all-time high of ₹1,60,000 to ₹1,65,000 per 10 grams by the end of the current year. However, analysts also advise that after the extreme rally, the market may see minor technical corrections, which will prove to be a great opportunity for new long-term investors to buy on dips.
