Who Sets the Price of Gold?
The price of gold, a crucial barometer of global economic health, is primarily determined by trading activities in two major markets: the London Over-the-Counter (OTC) spot market and the COMEX futures market in New York. These markets, which prioritize gold trading over its physical supply and demand, set the stage for gold prices worldwide. It’s worth noting that global economic and political events, central bank policies, and currency value changes, all pivotal factors in comprehending the gold market, also exert significant influence on gold prices, offering a comprehensive understanding of the market dynamics.
Current Gold Prices
- 24 Carat Gold: ₹74,210 per 10 grams (₹7,42,100 per 100 grams)
- 22 Carat Gold: ₹68,370 per 10 grams (₹6,83,700 per 100 grams)
Why Do Gold Prices Change?
Gold is often considered a safe investment, especially during economic downturns. Several factors can cause gold prices to fluctuate, including:
- Changes in the value of the US dollar and interest rates
- Central bank policies
- Concerns about inflation
- Trade tensions and political uncertainty
Additionally, the value of the Indian rupee and changes in import tariffs can also affect gold prices.
Also Read| Today’s Gold Prices in India: 24Carat and 22Carat Rates, Market Factors, and Investment Insights
Do Gold Prices Vary with Discounts?
In the grey market, a sector with less regulatory oversight, gold can sometimes be sold at a discount. These sellers exploit the higher margins of rising gold prices. However, it’s of utmost importance to realize that these discounts can vary between dealers and are only occasionally passed on to customers. While this may seem advantageous to some, this practice can diminish the profitability of legitimate dealers and pose potential risks for investors, highlighting the necessity of transacting with reputable sources.