Priyanka Tiwari
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Gold prices in India have reached a record high, with 10 grams of gold hitting Rs 90,000 on March 18, driven by growing safe-haven buying amid fears of a recession in the US. Investors have turned positive on exchange-traded funds (ETFs), seeking refuge in gold as global economic tensions rise. As of March 19, the price of 999 purity gold was trading at around Rs 88,680 per 10 grams according to the India Bullion and Jewellers Association.
Gold Prices on MCX Soar to New Heights
Gold's April contracts on the Multi Commodity Exchange of India (MCX) reached a new lifetime high of Rs 89,014 on March 19. The surge in prices comes amid growing concerns over global tensions and economic uncertainties, further increasing the safe-haven appeal of gold. The rise in gold prices reflects increasing investor confidence in the yellow metal as a hedge against economic risks.
Understanding the Difference Between 22-Carat and 24-Carat Gold
- 24-carat gold is the purest form of gold, containing 100% gold with no trace of other metals. It is highly prized for its purity but is softer and more prone to scratching.
- 22-carat gold, on the other hand, is 91.67% pure gold, with a mix of other metals like silver or copper. It is stronger and more durable, making it a popular choice for jewelry.
Latest Gold Prices in 10 Major Indian Cities
Here are the latest prices of 22-carat and 24-carat gold per 10 grams in 10 major cities in India:
| City | 22 Carat Gold (Rs/10 gm) | 24 Carat Gold (Rs/10 gm) |
|---|---|---|
| Delhi | 83,050 | 90,590 |
| Mumbai | 82,900 | 90,440 |
| Chennai | 82,900 | 90,440 |
| Kolkata | 82,900 | 90,440 |
| Bengaluru | 82,900 | 90,440 |
| Jaipur | 83,050 | 90,590 |
| Lucknow | 83,050 | 90,590 |
| Hyderabad | 82,900 | 90,440 |
| Ahmedabad | 82,950 | 90,490 |
(Source: Good Returns)
Impact of US Federal Reserve Meeting on Gold Prices
The rise in gold prices is closely linked to the outcome of the US Federal Reserve's FOMC meeting. Gold is highly sensitive to interest rate expectations and the US dollar. Narinder Wadhwa, Managing Director & CEO of SKI Capital Services Ltd., explains that if the Federal Reserve maintains interest rates, gold may see limited upside or a slight pullback. Higher interest rates can make non-yielding assets like gold less attractive. However, if Fed Chair Jerome Powell signals potential rate cuts later in the year, the US dollar could weaken, providing a boost to gold prices, as lower rates reduce the opportunity cost of holding gold.
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