A steady rise of the US dollar since the war in Ukraine and further driven by interest rate hikes by the Federal Reserve, has also led to a fall in the price of gold which is dependent on the dominant currency. Despite rising marginally to Rs 5,078 a gram, as local demand for Diwali approaches, the yellow metal has remained far below this years peak of Rs 5,438 per gram. But the gold rates in India haven’t followed the global trajectory, as the Indian Rupee has been losing value this year.
Precious metals reflect festive cheer
The rate of 22 carat gold is currently at Rs 4,655 per gram up from Rs 4,642 the day before, while 24 carat went up from Rs 5,064 a gram to Rs 5,078. While gold showed signs of shining amid festive lights, silver held its own at Rs 56.40 per gram, remaining unchanged. Gold had hit its all time high in April, which was around the time that Russia invaded Ukraine and policy changes triggered a surge in US dollar rates.
Better than most secure investments
Although gold prices dipped by more than Rs 350 a gram from the yearly peak, the commodity still delivered a 6.1 per cent return on gold investments made during last Dhanteras. This makes it a better and more reliable investment during a crisis, as compare to fixed deposits that led to 5.5 per cent returns in the past year. Back on Dhanteras 2021, the price was hovering around Rs 4,785 per gram, but this year it has stayed above Rs 5000 a gram with festive cheer around the corner.
Prices were highest in Chennai with Rs 4700 for a gram of 22 carat gold and Rs 5,127 for 24 carat.
Delhi’s rates were second highest at Rs 4,670 a gram for 22 carat gold and Rs 5,095 per gram for 24 carat.
People of Mumbai can bag a gram of gold for Rs 4,655 for 22 carat and Rs 5,078 for 24 carat gold.
Gold prices globally might further fall, as aggressive rate hikes in the US are likely to push dollar upwards. As festive buying begins, the World Gold Council’s prediction about India’s gold demand crossing China’s could become a reality.
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