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All Things Gold: Why are gold prices rising, why is demand high despite surging prices and how to check purity of gold?
5 min read | Updated on October 28, 2024, 18:05 IST
SUMMARY
While the gold prices in the country have been rising, the demand for the metal has persisted. The festive demand for gold during the Diwali season has led to a lot of discussion around gold in the Indian market. Discover what affects gold prices, why has gold been touching all-time highs and more.
The government of India reduced the total customs duty on gold to 6% from 15% in July
Gold prices in India have been on a continuous rise and the upcoming Diwali festival is generating a lot of heat in the market. While the gold prices saw a slight decline on Monday, October 28, there has been an overall rising trend in the gold markets in India.
Gold prices over the past 10 days
| Date | Gold Price (₹) | Change (%) | Silver Price (₹) | Change (%) |
|---|---|---|---|---|
| October 28, 2024 | ₹80,453.00 | -0.01% | ₹73,763.00 | -0.01% |
| October 27, 2024 | ₹80,463.00 | 0.88% | ₹73,773.00 | 0.88% |
| October 26, 2024 | ₹79,763.00 | 0.16% | ₹73,133.00 | 0.16% |
| October 25, 2024 | ₹79,633.00 | -0.77% | ₹73,013.00 | -0.77% |
| October 24, 2024 | ₹80,253.00 | 0.56% | ₹73,583.00 | 0.57% |
| October 23, 2024 | ₹79,803.00 | -0.03% | ₹73,163.00 | -0.03% |
| October 22, 2024 | ₹79,823.00 | 0.30% | ₹73,183.00 | 0.33% |
| October 21, 2024 | ₹79,583.00 | -0.01% | ₹72,943.00 | -0.01% |
| October 20, 2024 | ₹79,593.00 | 0.54% | ₹72,953.00 | 0.51% |
| October 19, 2024 | ₹79,163.00 | 1.11% | ₹72,583.00 | 1.11% |
Why are gold prices rising in India?
In times of global uncertainty and market volatility, people tend to lose confidence in currencies and are often swayed towards buying safer assets like gold. The increased demand for gold during the unpredictability of markets leads to a surge in its prices and the currencies are further depreciated as investors seek refuge somewhere else.
Currently, the geopolitical tensions in the Middle East, the global volatility due to the upcoming elections in the USA and the festive demand for gold in India with Diwali just around the corner are driving gold prices higher.
The government of India reduced the total customs duty on gold to 6% from 15% in July. This was the lowest rate in over a decade, since 2013, as per a report by the World Gold Council. This decision, announced by Finance Minister Nirmala Sitharaman in the Union Budget 2024, led to a temporary decrease in gold prices from around ₹76,000 to 70,000 per 10 grams across India and an increased demand for the metal. Since then, the prices have increased quickly.
Why is the demand for gold high despite surging prices?
Reports have shown that gold prices have increased by nearly 30% since Diwali 2023. Even though the gold prices in the country have been on the rise, the demand for gold hasn’t slowed down a lot. The festive hype has managed to keep the demand up and experts believe that it is not expected to die down any soon. According to a CNBC-TV18 report citing experts, the demand for gold and silver will persist even with the surging prices.
How to check gold purity ahead of the festive season?
The tradition of buying gold on Dhanteras and Diwali in India has existed for years and highly affects consumer behaviour in the country.
Many merchants try to take advantage of the high gold demand in the market and sell low-quality gold to customers. If you’re looking to buy gold this Diwali season, here are a set of ways to check the purity of the metal:
Lastly, remember to take the bill when you buy any gold item. The bill must include weight, karats and the hallmark certificate.
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