Gold prices steady after record Dhanteras sales, despite global pressure on yellow metal

The precious metal’s online sales also registered a 40 per cent spike, as young Indians invested in e-gold.

FPJ Web DeskUpdated: Tuesday, October 25, 2022, 12:02 PM IST
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Mumbai: Dhanteras gold rush at Zaveri Bazaar |

Amidst bright lights, lanterns and fireworks during Diwali, it’s still hard to miss the bling of gold in the markets at night, despite the presence of other precious metals. Beyond jewellery, gold is one of the oldest forms of investment and linked to cultural practices as well as traditions followed as part of weddings in India. This is the reason that gold rates have remained steady in India on the day after Diwali, despite precious metals feeling the pressure from a strong dollar globally.

Pent up demand powers record sales

After gold sales hit an all time high of Rs 25,000 crore on Dhanteras this year despite inflation, the yellow metal is selling at Rs 4,701 per gram for 22 carat and Rs 5,129 per gram for 24 carat. Gold had gained some ground globally last week, as markets showed optimism about the US Federal Reserve going slow on interest rate hikes. With young investors eyeing the festive bling, gold sales went up by 35 to 40 per cent on digital platforms as well, as Indians invested in e-gold.

Chennai is once again leading with 22 carat gold priced at Rs 4,741 per gram and 24 carat at Rs 5,172 a gram.

Gold in Delhi markets is available for Rs 4,715 a gram for 22 carat, while 24 carat gold is worth Rs 5,145 per gram.

Mumbai and Kolkata have similar prices at Rs 4,701 per gram for 22 carat gold, and Rs 5,129 a gram for 24 carat.

Gold outshines all other assets

Gold remains the preferred and safest investment for Indians apart from being auspicious, which is why 65 per cent in Indian cities would go for the yellow metal. Every year on Dhanteras, about 30 tonnes of gold is sold in the country and this year it surpassed expectations to reach 55 tonnes thanks to pent up demand from the pandemic.

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