Gold and interest rates tend to have an inverse relationship. This results in a spike in the prices of gold, which, in a way, acts as a hedging tool against inflationary conditions. In such a scenario, may prefer to hold onto money in the form of gold. In general, the demand for gold rises in India during the wedding and festive seasons.ĭuring inflation, the value of the currency goes down. Similarly, an oversupply of gold with stagnant or weak demand can push the prices lower. Increased demand with constrained or low supply usually results in a price hike. Like any other commodity, demand and supply economics has a huge impact on gold prices. Find below some of the factors affecting daily gold rates. While demand for gold is one of the key factors that determines its market price, a gamut of other factors have a role too. Like other financial assets, the price of gold also keeps fluctuating. Gold is one of the most popular investment tools worldwide, especially in India. Gold rates may vary from city to city based on various factors including demand, interests levied, octroi charges, state taxes, gold traders, bullion associations, transportation costs, making charges and other such. It is usually tainted due to the presence of other metals. It is mostly used for making jewellery, bars, bullions, and coins. It is relatively inexpensive due to lesser percentage of pure gold. It is mostly used in medical and electrical equipment including computers, phones, and more. It has a hard texture and thus cannot be easily moulded or bended.
It is quite soft, pliable, brittle, and bendable. Rest of the parts are metals such as silver, copper, or some others. It is the purest form of gold and contains 99.5% of the precious yellow metal.
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