Gold has been seen as a solid and secure investment especially during turbulent times across the globe. The US economy is facing headwinds with inflation at a 40-year-high and recession looming in the next year, causing doubts among investors. This has triggered a rise in demand for gold bullions as investors look for a safe investment, leading to a rise in gold prices to Rs 5,296 per gram for 24 carat and Rs 4,855 a gram for 22 carat of the yellow metal.
Investors look to book profits
The price of gold in India has increased 6.50 per cent on a yearly basis, as the precious metal is making gains during India’s wedding season, backed by US Federal Reserve’s hints of a softer interest rate hike. But it didn’t surge a lot, since the Dollar remained strong despite lower than expected inflation data reported in the US. This has also raised expectations that investors might sell the precious metal to book profits ahead of major developments at the G20 meet today.
As weddings are likely to trigger a demand surge for jewellery across Indian cities, here’s how that has affected prices.
Chennai remains the most expensive city for gold buyers with 24 carat available at Rs 5,347 per gram and 22 carat gold for Rs 4,901 a gram.
For Delhi the prices are at Rs 5,311 per gram and Rs 4,870 per gram for 24 and 22 carats respectively.
Financial capital Mumbai is selling it at Rs 5,296 per gram for 24 carat and Rs 4,855 a gram for 22 carat, which is the same as Kolkata.
Gold loans in demand
Gold being a traditional asset in Indian households, also acts as an instrument to access credit in times of inflation and recession. This explains why gold loan providers such as Mannapuram and Muthoot reported profits, and are eyeing growth from low-interest lending against the precious metal.