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Due to strong signals from global markets and festive and wedding demand in the domestic bullion market, there has been a strong rise in the prices of gold and silver. Due to softening of the dollar index in the international market and increasing demand for the yellow metal as a safe-haven, there has been a significant rise in the prices of 24 carat and 22 carat gold in the Indian markets. Gold prices are trading in the green in all major metros from the capital Delhi to Mumbai, Kolkata and Chennai. At the same time, on the basis of industrial demand and international boom, silver prices are also witnessing a strong rise, due to which the interest of jewelery buyers and investors has once again increased.

Latest prices of 22K and 24K gold in major cities

There is a slight variation in gold prices in different cities of the country due to local taxes, VAT and transportation costs:

• Delhi: In the capital Delhi, the price of 24 carat pure gold has increased to strong levels, while the prices of 22 carat gold used in jewelery making has also registered a significant increase per 10 grams.

• Mumbai and Kolkata: There is an upward trend in the rates of 24K and 22K gold in the bullion markets of the financial capital Mumbai and Kolkata.

• Chennai: Demand for gold is traditionally highest in Chennai, South India’s largest gold market, where prices in both 24 carat and 22 carat categories are trading high.

• 18 karat gold: The prices of 18 carat gold, popular for lightweight jewelery and affordable jewellery, have also increased proportionately.

Stormy rise in silver prices and action of MCX

Along with gold, strong buying has also been seen in the prices of silver (Silver Price Today). Silver futures contracts on Multi Commodity Exchange (MCX) have registered gains with strong volumes. Silver prices have surged in the spot markets due to continued strong global demand from the electronics, solar panels and electric vehicle (EV) industries. According to analysts, buying support for silver is expected to continue as long as global geopolitical uncertainties and industrial consumption persist.

4 main reasons for the rise in gold prices

According to commodity and financial market experts, the following global and domestic factors are the main reasons behind this rise in gold:

• Global safe-haven demand: Due to geopolitical tensions in West Asia and globally, central banks and large institutional investors are increasing purchases of gold to protect their assets.

• US interest rates and dollar stance: The monetary policies of the US Federal Reserve and fluctuations in the dollar index have a direct impact on the bullion market. A weaker dollar makes it cheaper to buy gold in other currencies, boosting global demand.

• Continuous purchases by central banks: Major central banks around the world are continuously increasing gold reserves in their foreign exchange reserves, providing long-term support to prices.

• Demand for domestic festive and wedding season: There has been a surge in spot demand due to advance stock preparation by retail jewelers and wholesalers in view of the upcoming festive season and weddings in India.

It is important to check hallmark and purity while buying gold.

While shopping in the bullion market, consumers should pay special attention to the rules of BIS hallmarking. As per government rules, it is now illegal to sell gold jewelery without the 6-digit alphanumeric ‘HUID’ (Hallmark Unique Identification) code.

• 24K gold: Considered to be 99.9% pure, used primarily for coins and bars.

• 22K gold: It is 91.6% pure (Hallmark 916), which is considered most suitable for making jewellery.

• 18K gold: It is 75% pure (Hallmark 750), which is used to strengthen diamonds and studded jewellery.

At the time of purchase, be sure to obtain a confirmed GST invoice from the jeweller, which should have clear details of making charges, purity and total weight.