Gold Price Remains Steady In spite of the Demand in Domestic Market


BENGALURU: After the hike of about 25 Pct in January this year, there is no much positive variation in the gold price.  With so much of changes in the domestic market, gold prices are likely to remain steady in the range of 30,500 - 33,500 per 10 grams, according to TOI.

In most of the Indian cities gold prices are ranging in at Rs 31,000-31,500 for 24 carat purity. Moving ahead the festive season is followed by wedding season, which will be the peak season for gold purchases in India.

Along with china, India is the second largest gold consumer across the globe. The gold imports in the recent years has climbed all the way up to 1,000 tonnes per annum, however this year the inflow has decreased due to the prolonged strike by jewelers against obligation of excise duty on Jewellery in the Budget and due to 10 Pct custom duty on imports.

According to the current trends and growing developments, gold has found support from the international markets and is likely to maintain above $1200 mark as a starting point for the upcoming rally.

This trend encourages investors to invest in gold, since many central banks offer negative interest rates. The negative interest is a huge deterrent for public investing in banks that will grind down their wealth instead of adding value.

Gold rates remain positive considering many factors including decreased pace of the US Fed rate hikes, improved adoption of negative interest rates lately in Japan , increased imports in gold ETFs(equity trade funds) and deterioration in gold production.

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