What is the gold rate in India Today?
Gold rate in India is a matter of concern for many Indian householders. For those looking to buy a piece of gold jewellery, it’s important to find out what the current gold rate in India is. A few hundred rupees can make a difference, especially in a heavy item.
In India, the demand for gold is rising due to the onset of festive seasons. The wedding season and other festivals increase the demand. But the demand is not quite at the same level it used to be. Even though gold has been a key medium for showing status in India, the price is not increasing as fast as it did in the past.
Gold imports into the country have declined in recent months. In the first two months of the year, gold imports had decreased by 37 percent. However, they could rebound in the last quarter. It is hoped that the bullion industry would benefit from the reduction in taxes and duty cuts that was announced in the Union Budget.
The gold rate is also being affected by the weakening of the Indian rupee. Imports of gold in India dropped by 30 tones during the month of January. This is lower than the average purchases for the month. Since the currency is expected to remain weak, imports are expected to remain low.
According to the World Gold Council (WGC), the demand for gold in the fourth quarter of 2017 will be higher than the demand during the fourth quarter of 2016. Despite the decline, India still holds the largest share of the world’s gold. During the period, the demand for gold was estimated at 240 metric tons per month.
Considering the fact that the government has introduced measures to discourage smuggling of gold, gold imports have been declining. This will affect the demand in the future, but it’s not expected to be as strong as it was in the previous year.
The demand for gold in the third and fourth quarters of the year is expected to improve, with the peak period being during Diwali and Akshaya Tritiya. However, with the rise in the cost of living, gold purchases may take a hit.
Moreover, the demand for gold is also being impacted by the growing GST rate. Although it is not a major issue, the tax will have an effect on the demand. The third quarter is when rural households use their disposable income. The fourth quarter is when people celebrate the festive seasons. Among the other factors, the demand for gold is also expected to improve during the wedding season.
Another factor that has a bearing on the price of gold is the PMLA requirement. The bullion industry has been expecting the duty to be cut for several years, but it was not in place in 2017. As a result, the prices of gold have gone up.
If the government is able to bring back the old rules for calculating duty, the industry is optimistic that it will be able to recover some of the lost ground. Still, the bullion industry is awaiting the release of the budget to see if there will be a change in rates.