International and domestic markets have noted several fluctuations in the price of gold in the past week due to the banking sector crisis in the West. At 10:20 am on Wednesday, March 22, gold futures on Multi Commodity Exchange (MCX) in India dropped by 0.04 percent. They traded at Rs 58,557. Silver futures, on the other hand, noted a rise of 0.3 percent, trading at Rs 58,596.
In the retail market, the price of gold slipped while that of silver remained stagnant. Ten grams of 24-carat gold was being sold at Rs 59,130, down by Rs 870. The price of the same quantity of 22-carat gold fell by Rs 800, selling at Rs 54,200. The price of a kilogram of silver remained unchanged at Rs 72,100 on Wednesday.
Gold was the costliest in Chennai among tier-1 Indian cities. Here, ten grams of the 24-carat variety cost Rs 59,670, while the price of the same quantity of 22-carat gold was Rs 54,700. In Delhi, customers had to pay Rs 59,280 for ten grams of 24-carat gold and Rs 54,350 for the same amount of the 22-carat type.
Since Telangana, Maharashtra, and West Bengal have similar taxation policies for gold, the price of the precious yellow metal in Hyderabad, Mumbai, and Kolkata, for 24-carat gold was similar: Rs 59,130 for ten grams. The cost of 22-carat gold here stood at Rs 54,200.
In Karnataka’s capital, Bengaluru, 10 grams of 24-carat retailed for Rs 59,180, while the price of 22-carat gold for the same quantity was Rs 54,250.
Indian gold prices are influenced by state-specific taxes, transportation costs, and other charges, leading to variation in state-to-state pricing of the precious metal.
India is a significant global consumer of gold, importing most of its supply due to the metal’s traditional symbolism of wealth, influence, and power, as well as its perceived ability to act as a hedge against inflation.
Daily gold rates in India are determined by multiple factors, including supply and demand, investor sentiment, and exchange rates, with current prices taking into account both immediate and anticipated market conditions.
The purity of the gold also plays a significant role in its valuation, with variations in quality ranging from 24-carat to 18-carat.
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