Factors Influencing 24CT Gold Price Today, Tomorrow & Beyond

India trusts gold when it comes to investing. Every household has a collection of gold jewellery, which they keep aside for the bad times. The metal price keeps changing daily, indicating the fluctuation in the economy. As a result, if you buy gold today and the cost of it doubles in the coming years, you will have an opportunity to sell the same at a better rate and reap significant profits.

For example, the 24ct gold price today, i.e., Dec 21, 2022, as of 9:33 am, is INR 4,827 per gram, which is less than yesterday’s closing price of INR 4,828. This shows how the costs of the metal can vary with the passing days. If you purchase gold at the current rate, the prices will likely increase in the next five or ten years. In that case, if the price per gram of 24ct gold after 10 years is INR 10,000, you will earn a profit of INR 5,173 per gram. Thus, if you buy 10 grams of gold today and pay INR 48,270, then after 10 years, you might sell the same and earn a profit of INR 51,730.

The example above shows how gold can hedge against inflation in the long run. 

Factors Affecting The Gold Rate In India

Finding today’s gold rate in India will let you know the current rate of the metal in the country. However, would you like to explore the factors that lead to the change in the prices of gold? If yes, let’s check them out.

Government’s Gold Reserves

The country’s gold reserves determine the level of support it offers to the national currency. When the gold reserves are strong, it strengthens the currency’s value. The nations that export more gold are significantly more stable economies than the countries that import more gold, signifying a poor economic condition. Thus, when the government purchases more gold, that country’s metal price is higher, and vice-versa.

US Dollar

The gold prices of a country decrease with the increase in the dollar value, and vice-versa. While calculating the 24ct gold price today, the US dollar value is taken into account, and it is converted into an Indian rupee to get the exact gold price in terms of the national currency. It can be said that when INR value depreciates against American dollars, gold prices fall.

Gold Demand

When the demand for any product increases with a limited supply, the price of that item goes up. The same applies to gold. When the market for gold shoots up, its price moves upward. This rise in requirement could be traced through the metal’s need at the domestic level in physical form or investment level as Exchange-Traded Funds (ETFs).

Final Words

So, now that you know today’s gold rate in India, you will be aware of the factors leading to the increase or decrease in the prices of metal. Plus, as a responsible citizen of the country, you will be able to assess the nation’s economic status. Keep finding out the daily changes in the prices and keep yourself updated regarding the financial health of the economy.

ed regarding the financial health of the economy

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