On Friday, January 23, the prices of gold and silver in India were still under emphasis because both precious metals were still exhibiting pronounced day-to-day change. These fluctuations are basically contributed on the global pattern, currency fluctuations, the mood of the investors and the current geopolitics that affect the demand of safe haven assets.
Currently, 24 karat gold in India costs Rs. 1,54,300 per 10 grams. In the case of 22 karat gold, which is generally used in jewellery, the price is 1,41,440 per 10 grams. In the meantime, 18 karat gold will cost Rs.1,15,720 per 10 grams. These prices are based on the average prices as indicated by major jewellers in major cities.
In the last session, the prices of gold had settled at Rs.1,54,310 corresponding to 10 grams, which showed a slight fall in the first part of the trading on Friday. With this slight adjustment, gold is at near record levels, which is backed by high world demand. During uncertain periods, gold tends to be sought after, and the present global economic fears have served to maintain the prices high.
Silver also finds the domestic market developing a lot of interest. Silver today is in the market at Rs.3,249 per 10 grams and Rs.3, 24, 900 per kilogram. Similar to gold, the prices of silver are affected by the trend in the global markets and the fluctuations of the Indian rupee against the US dollar. The domestic prices can be pushed up even when the international rates of silver are kept steady, due to a weaker rupee.
The prices of gold are also slightly different across the major cities. The gold of 24 karats is selling at Mumbai at Rs.1,54,300 per 10 grams, and in Delhi at a little bit higher at Rs.1,54,450. Some of the highest rates also remain in Chennai, as karat gold 24 still stands at Rs.1,54,900 per 10 grams. The same small variations are observed in the silver prices, whereby cities in the south like Chennai, Hyderabad and Kerala are quoted higher rates than other cities like Mumbai and Delhi.
According to market pundits, the gradual increase in the price of gold and silver is attributed to a combination of world and country-based factors. Geopolitical tensions and fears of the growth of the world economy have made international bullion prices firm.
Simultaneously, the anticipations with regard to the interest rates within the key economies are also affecting the behaviour of investors. Gold is better when the interest rates are expected to remain low, since it does not pay any interest, yet it is viewed as a store of value.
Another important factor is the movement of currency. Even in the case the world prices do not vary significantly, a weaker rupee will make the imported metals such as gold and silver costly in India. Besides that, prices are also supported in the local market by seasonal demand, particularly before weddings and festivals.
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All in all, both gold and silver are still trading at high levels, indicating a high demand and unpredictable time in the world. Customers and shareholders are closely monitoring the fluctuations of the day because even the tiniest international trends may be rapidly transferred to the domestic market.
