India: Gold prices have remained unchanged

19 Apr, 2022

India: Gold prices have remained unchanged


Despite the significant rise in global inflation, gold prices have remained stable. It's still roughly Rs. 51, 000 for 10 grammes. Gold prices have historically risen in response to growing inflation.

This makes up for the loss caused by inflation. Around the world, gold is used as a hedge strategy. However, we can state that this time it is not a trend. In 2020, worldwide inflation was 3.18 percent, but by 2022, it had more than doubled to reach 7%.

Gold will cost Rs 48,600-48,700 per 10 grammes between 2020 and 2021. The price of gold this year, according to the study, is Rs 51,500. There is minimal likelihood of climbing higher than the current price of Rs 51,170 per 10 gramme.

Inflation is reaching 40-year highs in the United States, Europe, and the United Kingdom. Despite this, gold's price is not only constant but also down 10% from its peak in 2020.

India: Gold prices have remained unchanged

India: Gold prices have remained unchanged

According to the World GoldCouncil, gold prices will not rise above $1,850 per ounce (Rs 1.44 lakh or 28.35 grammes) this year. This implies that a 3.17 percent increase in gold is feasible.In April, India's inflation rate hit an eight-year high of 7.95 percent, up from 4.23 percent in April 2021. The price of gold, on the other hand, only increased by 5%.

Interest rates have risen in many countries around the world, including the United States, Europe, and India.

This cycle might go on indefinitely. The demand for gold as an investment drops in such circumstances. In any case, when interest rates rise, the dollar becomes more expensive, making gold appear cheaper. According to Manoj Jain, Director and Commodity and Currency Head at Prithvi Fin Mart, inflation is helping the dollar rather than gold.

As US inflation rises to 8.5 percent, the Fed continues to raise interest rates.The dollar index rises as a result of this. As a result, the gold price is not rising.

India: Gold prices have remained unchanged

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