Gold Prices Surge Again: Last Ray of Hope Fades Away
Gold prices in the state have increased again. There has been a rise of Rs 160 per sovereign of gold. Today’s price for one sovereign of gold is Rs 52,840, while the price for one gram of gold has risen to Rs 6,914. The previous day’s price for one sovereign of gold was Rs 52,680. The highest gold price of this month was on May 2, when the price for one sovereign of gold reached Rs 53,000.
It was during April that the price for one sovereign of gold crossed the half-a-lakh mark. There have also been changes in silver prices. The current price for one gram of silver is Rs 86 and the price for one kilogram of silver is Rs 87,500.
As part of diversifying its foreign exchange reserves, the Reserve Bank is purchasing a significant amount of gold. During the three months from January to March, RBI bought 19 tonnes of gold. Last year, there was an increase of 16 tonnes in gold reserves. RBI is increasing its gold reserves to address any potential emergencies as inflation rates are on the rise.
Fluctuations in the value of the dollar against major world currencies also contribute to gold’s popularity. In the week ending April 5, the country’s total foreign exchange reserves reached an all-time high of 64.85 billion dollars. World Gold Council suggests that the substantial increase in prices will likely reduce the country’s gold consumption to its lowest level in four years.
Last year, India’s gold consumption declined by 1.7 per cent to 761 tonnes. There has been a 13 per cent increase in gold prices so far this year. While there is a growing interest in gold as an investment, there isn’t much enthusiasm for purchasing it as jewellery. According to the World Gold Council, gold consumption in India increased by eight per cent in the three months from January to March reaching 136.6 tons. Gold consumption in India this year is estimated to range between 700 to 800 tons. However, a price increase may lead to decreased consumption.
