Gold is one of the most revered metals in the Indian culture. From festivals, to weddings to birthdays, no auspicious occasion goes by without making use of this metal.

Today's Gold Rate in India 19.03.2019

Gold price per 10g

Cities22 carat24 caratChange %Date
Gold rate in MumbaiRs. 31300Rs. 33475.94-0.95%2019-03-18
Gold rate in PondicherryRs. 30350Rs. 32459.89-0.78%2019-03-18
Gold rate in AhmedabadRs. 31670Rs. 33871.660%2019-03-18
Gold rate in JaipurRs. 31450Rs. 33636.360%2019-03-18
Gold rate in KeralaRs. 29900Rs. 31978.61-0.5%2019-03-18
Gold rate in HyderabadRs. 30590.86Rs. 32717.50-5.35%2019-03-18
Gold rate in KolkataRs. 31500Rs. 33689.84-0.19%2019-03-18
Gold rate in BangaloreRs. 29980Rs. 32064.17-0.79%2019-03-18
Gold rate in DelhiRs. 31250.79Rs. 33423.30-7.53%2019-03-18
Gold rate in ChennaiRs. 30590Rs. 32716.580.16%2019-03-18
Gold rate in GulfRs. 138.85Rs. 148.500.68%2019-03-18

Common Factors that Determine Gold Prices in India.

Inflation

Gold, due to its almost steady character as compared to currency, holds significant value and is used to hedge inflation. This is why investors prefer to hold gold rather than currency. As a result, when the inflation is high, the demand for gold increases and vice versa. The price of gold will then shoot up as a result of high demand from customers. This holds true for both international inflation as well as that which occurs in India.

Global Movement

Any global movement in the price of gold affects the price of the yellow metal in India. This majorly derives from the fact that India is one of the largest importers of gold and as such when the import prices change due to global movement in price, the same is subsequently reflected in the prices of gold at home. Since, the value of currency as well as various financial products may fall during any political upheaval, gold is seen as a safe haven by investors and as such the demand and price of gold rise in times of political chaos as compared to peaceful times. The interest in buying gold rises among consumers when their confidence in the government and markets falter and as such gold is called as the crisis commodity.

Government Gold Reserves

Central banks of most major countries hold both currency as well as gold reserves. US Federal Reserve of the US and Reserve Bank of India are two prime examples of this. When central banks of large countries start holding gold reserves and procuring more gold, the price of gold goes up. This is because the flow of cash in the market is increased while the supply of gold goes down.

Jewelry Market

Indians love their gold jewelry. Be it festivals or birthdays, gold jewelry holds a special place in Indian households. During the wedding season and also during festivals like Diwali, gold prices go up as a result of increased consumer demand. The demand-supply mismatch leads to raised prices. The demand for gold does not just end at jewelry requirements. The metal is used in small quantities by various electronic companies for manufacturing of devices like television, computer, GPS etc. In India, gold is used for jewelry requirements, as a gifting article, for showing off wealth as well as a strong hedge against rising inflation. All these combined make the domestic demand for gold rise so much that India has to time and again import huge quantities of the yellow metal. The industrial demand for gold accounts for 12% of the total demand for gold in the country. Medicine is another

Interest rate trends

Interest rates on financial products and services are tied closely with the demand for gold. Current gold prices are generally good indicators of the interest rate trends of any country. With increased rates of interest, customers tend to sell gold to acquire cash and as such an increased supply of gold leads to reduced rates of the metal. Alternatively, lower interest rates translate to more cash in the hands of customers and as such greater demand of gold and thereby increased price of the metal.

The performance of a currency is also a big determinant of the price of gold today. The most important currency is the USD. If the USD climbs up, gold rates are likely to move down worldwide.

A lot is at stake due to Indian currency as well. It specifically relates to gold rates in India. You should keep a tab on current gold rate in India. Domestically, when rupee is stronger, gold prices are lower.