New Delhi: – Gold rate in India has reached a record level of ₹50,000. On Wednesday, the price of gold crossed the level of USD 1,800 per ounce in the international market. Therefore, the gold rate reached record levels, even in India. Currently, there is a recession in the world economy due to the Coronavirus pandemic. Therefore, investors are choosing the safe investment of Exchange Traded Fund (ETF) Gold Bonds. Thus, despite the fall in demand for gold, the rates are peaking, and the jewellers’ association predicted that the gold rate would cross ₹55,000 by Dussehra.
The gold rate has reached ₹48,766 per 10 grams in the wholesale market. Whereas, the gold rate crossed ₹50,000 in the retail market. The customer will have to pay more than ₹51,000, including GST. The retail gold rate in the Delhi market was ₹50,050, and in the Mumbai market, it was ₹50,100. The gold demand had dwindled to almost nothing for the last three months. But the gold rate kept increasing in this period. Now that the lockdown is being relaxed and the gold demand is rising, the price is growing faster.
Currently, all the major economies of the world are in the shadows of recession because of the Coronavirus pandemic. Major upheavals are seen in the stock market too. Therefore, the trend is to invest in gold as a safe investment. Moreover, there has been a reduction in the excavation and purification of gold at the gold mines. This also has affected the gold rate.
Gold imports into India also have reduced over the last three months. Last year, in June, 70 tonnes of gold had been imported, as against only 11 tonnes, in the country this June. Moreover, the demand is starting to increase since the relaxation of lockdown. With the fear of Coronavirus and also a rise in the gold rate, people are refraining from buying gold. Therefore, as per market experts, the demand will remain low and the prices high for the next three months.
Two years ago, the gold rate was between ₹30,000 to ₹32,000. Gold has done wonders as compared to the other investments, in terms of returns. Gold has earned 43% returns for investors in last one year. Along with gold, the rate for silver is also rising. The price for silver has crossed ₹51,000.