The gold prices in India seem to have taken a hit as of January 18th 2024. With this update, we try to cover the factors affecting the volatile metal to help you make informed decisions before investing in gold.
Introduction
Gold prices in India were slightly lower on January 18th, 2024 for both twenty-two carat and twenty-four karat prices sloshed at ₹5,740 per gram and ₹6,262 per gram respectively.
However, the causes for this slump remain an enigma; however, it is important to note that gold prices are highly volatile and depend on several factors. Let’s take a deep dive into it.
A quick overview of the gold prices in India
| Karat | Gram | Today (₹) | Yesterday (₹) | Change (₹) |
| 22 | 1 | 5740 | 5770 | -30 |
| 8 | 45920 | 46160 | -240 | |
| 10 | 57400 | 57700 | -300 | |
| 100 | 574000 | 577000 | -3000 | |
| 24 | 1 | 6262 | 6295 | -33 |
| 8 | 50096 | 50360 | -264 | |
| 10 | 62,620 | 62,950 | -330 | |
| 100 | 626,200 | 629,500 | -3300 |
Key Takeaways:
- Gold prices in India witnessed a slight decline: The price of 22-karat gold dropped to ₹5740 per gram and that of 24-karat gold went down to a level of ₹6,262 per gram.
- The reasons behind the dip are uncertain: Demand, inflation, interest rates and geopolitics all influence the prices of gold.
- Gold remains a popular investment tool in India: Even after the current dip, gold remains a prized investment among many individuals as it is seen to be stable in nature and acts like an inflation hedge.
Understanding Gold Prices
A complex economic dance of global and domestic factors determines the price of gold. Some key influences include:
- Demand and Supply: When demand for gold is high, particularly during celebrations or times of economic instability it causes the prices to rise. On the other hand, a decrease in demand causes low prices.
- Inflation: As inflation increases, the value of money decreases so that gold becomes a more preferable investment option as it is perceived to hold its worth.
- Interest Rates: Investment in gold may decrease with higher interest rates, as investors move on to investments that provide better returns. On the other hand, lower interest rates can increase demand for gold.
- Geopolitical Events: If there are global conflicts or economic uncertainties demand for gold is, a haven asset; which can drive up the price of gold.
Investing in Gold
The investment in gold can be very beneficial especially if one considers that there are diverse portfolios. Nevertheless, it is important to investigate all aspects of a prospective investment thoroughly before taking any action. Some key factors to consider:
- Purity: Gold’s purity is measured in carats, with 24 being the highest. Gold is valuable, and gold of very high purity does not work for jewellery due to its softness.
- Making Charges: Jewellers also charge for gold jewellery making. Consider these charges prior to buying.
- Storage and Security: The need for security arises when investing in physical gold due to the possibility of theft or loss.
What’s in the future?
Despite the slight decrease in gold prices today, it is quite arduous to predict what direction they will take in the future. Hence, maintaining awareness towards the factors that drive gold prices and also carrying out your research work will help you make informed investment decisions.