look news india
There is a continuous rise in gold prices. Gold reached a new peak on Monday. The price of gold on Multi Commodity Exchange crossed Rs 71,000 for the first time. In early trade it increased by about Rs 400 to Rs 71,057 per 10 grams. Even in the foreign market, gold is being seen at record levels. The question is, what is the reason for this rise in gold?
today's gold price
According to the official website of India Bullion and Jewelers Association (ibjarats.com), today there has been a strong increase of Rs 1182 in 10 grams of 999 purity gold and the price has reached the level of Rs 71064. Whereas 10 grams of gold with 916 purity has increased by Rs 1083 to reach the level of Rs 65095. Talking about silver, currently it is seen at Rs 41572 per kg with an increase of Rs 2287 per kg.
Increase of Rs 8000 in a month
On March 1, 2024, the IBJA rate for 10 grams of gold of 999 purity was seen at Rs 62592. Whereas today the price of 10 grams of gold is seen at Rs 71064. In this way, a bumper increase of Rs 8472 has been seen in the price of gold in the last 39 days. The price of pure silver at that time was Rs 69977 per kg, which has now increased to Rs 81383. That means, during this period, an increase of Rs 11406 has also been seen in silver.
special Notes: Let us tell you here that the prices released by the Indian Bullion Jewelers Association indicate the standard price of gold of different purities. All these prices are before tax and making charges. The rates issued by IBJA are universally accepted across the country. But its prices do not include GST. The price a customer has to pay when buying jewelery is higher because it includes taxes.
Is this the reason for price increase?
The question is, what is the reason behind this increase in the price of gold? One reason for this is that the central banks of many countries are increasing the reserves of gold in their reserves. This includes RBI and Central Bank of China. China's central bank bought 12 tonnes of gold in February and continued to buy more in March. The People's Bank of China has been buying gold for 17 consecutive months. Experts say that this is also a major reason for the record increase in gold prices.
According to Bloomberg report, China's central bank's gold reserves increased to 72.74 million troy ounces in March. China's foreign exchange reserves have reached a record level since November 2015. It reached $3.2457 trillion at the end of March. This was up 0.6 percent from February and 1.9 percent from a year earlier. Central banks around the world have increased their gold reserves from 2022. In 2022, these banks bought more than 1,000 tonnes of gold for the first time and then in 2023 also they bought almost the same amount of gold. Currently, more than 20 percent of central banks' reserves are gold.
Why do banks buy gold?
Experts say gold is the best hedge against the dollar's weakening purchasing power. This has been happening for the last 110 years and will continue to happen in future also. Even when the currency and economy are in danger, the central bank buys gold on a large scale. There is a possibility of recession in America, China and many countries of Europe. Especially China is facing many difficulties on the economic front. Thus, America is number one in terms of gold reserves. There are about 8133 tonnes of gold in its treasury. After this are Germany, France, Italy, Russia, China, Switzerland and India. RBI has purchased about 13 tonnes of gold this year and has reserves of 817 tonnes.