Kochi – The price of gold has once again reached a record high in the domestic market, with the cost of one pavan (8 grams) of 22-carat gold surging by a massive ₹1,520 today to touch ₹97,360.
The dramatic increase follows a two-day period of decline, pushing the price per gram up by ₹190 to ₹12,170. Yesterday, a pavan of gold was trading at ₹95,840. This upward momentum is reigniting market speculation that the price may soon breach the ₹1 lakh mark, a level it was nearing before a sudden drop of ₹1,400 per pavan on Saturday.
The primary catalyst for the current spike is the dynamic movement in the international gold market, which directly reflects in Indian prices. As one of the world’s largest consumers of the yellow metal, India imports tons of gold annually, meaning even minor fluctuations in the global market have a substantial impact on domestic rates.
Global & Domestic Factors at Play
While international market shifts are a major factor, the final gold price in India is a complex calculation influenced by several domestic variables:
- Rupee-Dollar Exchange Rate: Since gold is globally traded in US Dollars, a weakening Indian Rupee makes imports more expensive, which is then passed on to the consumer.
- Local Demand: High demand, especially during festival and wedding seasons, can exert upward pressure on prices.
- Import Duties: Government-imposed import duties and taxes on the metal significantly add to the final retail price.
The confluence of these factors suggests that even if the international price sees a dip, a corresponding reduction in the domestic Indian price is not guaranteed, maintaining the precious metal’s status as a volatile but often favoured investment asset.
