Gold price jumps amid uncertainty as rocket hits Poland triggering demand for bullion as safe investment

Despite the surge of cryptocurrencies, NFT and a plethora of other investment options, tried and tested assets such a gold or real estate emerge as safe havens in turbulent times. After a meeting between Chinese premier Xi Jinping and US President Joe Biden created hope for global tensions to cool down, a rocket strike in Poland has triggered concern among investors. As the demand for gold bullion as a secure hedge against geopolitical uncertainty, the yellow metal’s price has hit a three-month high.

High demand and import tax driving up smuggling?

In India, the price for 24 carat gold has reached Rs 5,299 per gram, inching closer to the Rs 5,300 mark, while 22 carat now stands at Rs 4,839 per gram. As gold demand in India remains high thanks to festivals and the wedding seasons that followed, higher import taxes are leading to more cases of smuggling. On November 11, gold worth Rs 32 crore was seized at Mumbai’s international airport in India’s biggest haul by customs authorities.

Gold prices vary across Indian states, while the demand remains high among households in every part of the country.

Citywide breakdown

At Rs 5,411 per gram for 24 carat and Rs 4,960 a gram for 22 carat, gold is the costliest in Chennai today.

As for financial capital Mumbai the rates are Rs 4,800 per gram for 22 carat and Rs 5,236 per gram for 24 carat, similar to Kolkata.

Delhi on the other hand is selling gold for Rs 4,815 per gram and Rs 5,251 a gram for 22 carat gold and 24 carat gold respectively.

Another precious metal silver also jumped to achieve a high of Rs 62.5 per gram.

Imports get costlier

A global rise in gold prices, has also prompted the Indian government to raise base import prices of the yellow metal. The prices had been slashed last month, as gold rates had been facing pressure due to rising interest rates in the US.

Published on: Wednesday, November 16, 2022, 01:39 PM IST