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Factors That Influence Gold Price India

Factors That Influence Gold Price India

Jan 25, 2020

24 Karat Gold

Factors That Influence Gold Price India

Gold prices in India are one of the most fluctuating assets in the public sector. These prices depend on several external factors which may not be related to them directly. This is one of the reasons why selling gold in India is a profession where profit is guaranteed but uncertain. You can sell gold at a higher price one day, and the prices may drop low the next.

You can estimate the gold price in India based on the variations seen in certain factors. These factors largely dictate the degree to which gold prices will rise or fall. Listed below are the dynamics that you need to watch out for before you sell gold in India!

Top 5 Factors Affecting Gold Prices in India

#1 The Verdict of the Reserve Bank of India

The Reserve bank of India is one of the most important determining factors of the gold price in India. The bank has a substantial amount of gold under their name. They sell this gold to the public in the instance where our economy is thriving. This can result in a change in the prices of gold in the country.

#2 Inflation Rates

Inflation in the Indian economy can result in a hike in gold prices. This is because, during inflation, the people of the country prefer . This investment in the commodity increases its demand, and so the gold price in India faces an increase.

#3 The Jewellery Market

In India, people prefer buying gold during the festival season. They also investing in gold during weddings, and this is the time when gold prices hike up. The increased demand for the product results in a higher gold price in India.

#4 Strength of the currency

The gold demand in India is made up for by the imports brought into the country. This gold is bought using out innate currency. In the instance where rupee falters, the amount of gold imported inside our country reduces significantly. The increased demand for gold is not met, and the price hikes up yet again.

#5 Interest Rates

When interest rates in the country increase, people tend to sell off their gold. This is done so that they can make extra cash selling their gold jewelry in the form of interest. This is one of the reasons why gold prices decrease, along with an increase in the interest rates in the country. If you wish to sell gold in India, you need to do your research thoroughly. This is because countless factors can hamper with your gold selling process. However, if you opt for 24Karat, you will not be let down.

The services offered by 24Karat are 100% genuine and are known to be reliable. Irrespective of the situation in the rest of the country, you can count on 24Karat to get you the best gold price on your jewelry. The services here are unmatched, and you will be astounded by the quality of customer care offered as well. Therefore, once you decide on selling your gold jewelry, drop by at your nearest 24Karat branch and get the best value for your gold!