The gold rates in India increased on Monday, October 13, maintaining the high momentum that was evident during the previous week. The all-India average of 24-carat gold per gramme cost Rs 12,377, while 22-carat gold cost Rs 12,080 per gramme. The 20-carat price fluctuated around Rs 11,015 per gramme, whereas the 18-carat variety, known to be preferred in lightweight jewellery, changed hands at Rs 10,025 per gramme. On the other hand, the 14-carat gold, generally preferred as jewellery to be worn on a day-to-day basis, cost around Rs 7,983 per gramme. These rates were released by the India Bullion and Jewellers Association and exclude GST or making charges.
Compared to Friday, October 10, the day the 24-carat gold cost Rs 12,085 per gramme, the rates have gone up by Rs 292, a sudden 2.6 percent jump.
Why the gold rates go up?
The recent spurt is being fuelled both externally as well as domestically. The world over, gold continues to be favoured as a store of value as investors turn to safe-haven assets given geopolitical fears as well as market uncertainty. Domestic timing is such that the purchase of jewellery, coins, as well as bars typically happens during the start of the festive season with Dhanteras as well as Diwali coming up. Jewellers are reporting increased footfalls, which has helped push the rates up.
Holiday season and home-based demand
For Indian families, gold buying during festivals is auspicious. Dhanteras, coming just days before Diwali, is one of the largest gold buying seasons. Traders are looking at the next two weeks to be strong with the help of both cultural sentiment as well as growing disposable incomes. Rural demand too is building up after a consistent monsoon that has lifted farm incomes. With families gearing up for big-ticket buying, near-term prices are expected to remain steady.
Global cues along with market direction
Globally, gold is being influenced by buying from the central banks, currency fluctuations, as well as bets on cuts to American interest rates. The rupee's value versus the dollar has a direct effect on Indian landed gold costs, with any additional weakening set to lift costs. Analysts also cite fears about trade tariffs alongside inflationary forces as continuing to make gold appealing to investors globally.
What the future holds for consumers
Analysts project the near-term direction of gold to be positive. As festive buying continues unabated, end-users might encounter spot buying at increased costs if they buy late. There will be some moderation in the month of November once the festival-linked buying subsides. Experts recommend buyers of jewels to buy sooner rather than later, whereas investors might consider gold as a safe bet to portfolios during uncertain times.
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