look news india
Amidst the preparations for weddings and the upcoming festive season, a relief news has emerged for gold buyers and investors in the Indian bullion market. After the rise in the previous trading sessions, the prices of the precious yellow metal have once again seen a declining trend in the domestic and global markets. Reduction in prices of both 24 carat (pure gold) and 22 carat (jewellery gold) categories has been recorded in the retail bullion markets of major metros like national capital Delhi, financial capital Mumbai, Lucknow, Jaipur, Patna and Kolkata. The direct impact of profit booking by investors due to the strengthening US dollar globally and rise in bond yields at the international level is clearly visible on the domestic market.
According to the latest data released by the Bullion Association and leading jewellers, the prices of 24 carat pure gold have declined by ₹ 60 per gram, bringing the price of 10 grams of 24 carat gold down to around ₹ 1,52,840 to ₹ 1,52,950. At the same time, the price of 22 carat jewelery gold, which is most used in jewelery making, has recorded a decrease of ₹ 55 per gram, due to which its price per 10 grams has slipped to around ₹ 1,40,100. Apart from this, the price of 18 carat gold, popular for light jewellery, has also come down to around ₹ 11,463 per gram. Bullion experts believe that this fall after the record high of the previous days can prove to be a great buying opportunity for those common consumers who were planning to buy for the upcoming festive demand.
There is slight variation in gold prices in different states and cities of the country due to local VAT, transportation costs and Jewelers Association margins:
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Delhi Bullion Market: In the capital Delhi, 24 carat gold is trading at around ₹1,52,990 per 10 grams and 22 carat gold at ₹1,40,250 per 10 grams.
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Mumbai and Kolkata: In the financial capital Mumbai and Kolkata of West Bengal, 24 carat gold was recorded at ₹ 1,52,840 per 10 grams and 22 carat gold at ₹ 1,40,100 per 10 grams.
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Uttar Pradesh (Lucknow and Kanpur): In major cities of UP, the price of 24 carat gold remains at ₹ 15,295 per gram and 22 carat gold at ₹ 14,010 per gram.
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Chennai and South India: In Chennai, 24 carat gold remained steady at ₹1,52,840 per 10 gram and 22 carat gold at ₹1,40,100 per 10 gram.
According to commodity and financial analysts, major international economic factors are responsible for this latest fall in gold prices. The biggest reason is the return of strength in the US dollar index. Since gold is traded internationally in US dollars, a stronger dollar makes it relatively expensive for countries with non-US currencies to buy gold, impacting global demand. The second reason is the rise in US Treasury yields; When returns on interest bearing assets improve, investors start shifting capital from non-interest bearing assets like gold to bonds, which creates selling pressure. Along with this, this weakness in domestic spot prices is also deepened due to heavy profit booking by speculators at upper levels on Multi Commodity Exchange (MCX).
If you are planning to take advantage of this decline and buy jewellery, then do not decide the final budget just by looking at the gold rates written on the board. According to the rules of the Central Government, from April 1, 2023, only jewelery with six-digit alphanumeric Hallmark Unique Identification (HUID) code can be sold legally in the country. Be sure to check the BIS logo, carat purity and 6 digit HUID number on any jewellery. Also remember that the rates issued by the bullion market do not include 3 percent GST and the making charges charged by jewelers (usually 8% to 18%). Therefore, while making the bill, take a confirmed bill and verify the correctness of the hallmark yourself on BIS Care App.