A rate hike of 5 per cent in import duty on gold didn’t stop the demand for the yellow metal from beating pre-covid levels and expectations with a 14 per cent uptick in the July-September quarter. The surge was driven by a 17 per cent rise in the demand for gold jewellery, which is essential for investments and gifting during the festive season. With all eyes on US Federal Reserve’s rate hikes, Gold has marginally gone up to Rs 4,665 from Rs 4,660 a gram for 22 carat, and hit Rs 5,078 per gram up from Rs 5,074 a gram for 24 carat quality.
Stress on gold helps gold glitter
With the dollar under pressure ahead of the US Fed rate hike decision, the yellow metal has managed to shine on the global stage with mild gains. The July-September quarter also saw record buying of gold by central banks across the world, reaching a total of 399 tonnes worth $20 billion. Jewellers and those who buy gold coins or bars for investment, also added to the demand for the precious metal.
Among Indian cities, gold is costliest in Chennai at Rs 4,730 per gram for 22 carat and Rs 5,160 a gram for 24 carat.
The value of the yellow metal in Delhi reached Rs 4,670 per gram and Rs 5,093 a gram for 22 carat and 24 carat gold respectively.
Mumbai and Kolkata remained on the same level to sell 22 carat gold for Rs 4,665 per gram and 24 carat at Rs 5,078 a gram.
Silver didn’t follow gold’s lead, as its prices went down from Rs 59.50 to Rs 58.90 per gram.
Better than Bitcoin?
Gold has also proved to be a more stable and profitable investment option as compared to volatile newbies such as crypto. The precious metal also available in electronic form, has delivered a 4 per cent return this year, while Bitcoin plunged by 57 per cent. Bitcoin did surge 1300 per cent in 2017-18 when returns on gold reached 7.3 per cent. But looking at the decline of Bitcoin compared to that, gains on gold only slipped by 3.3 per cent despite a two-year drop in prices.
