Gold Rate Falls As Rupees Struggle Against Dollar

The gold rate struggles as the Rupees fall more against Dollar. The current currency exchange rate of Rupees against 1 dollar is 79.73.

Gold rate decreases further — Source: India Postsen

Gold prices struggled today to stay above two-year lows due to the strong US currency and the likelihood of swift US rate increases. Bond rates increased and bullion lost its lustre due to expectations of ad hoc rate increases by the US Federal Reserve. Markets have already factored in a rate increase of 75 basis points by the US central bank.

Indian gold prices stayed close to 6-month lows as MCX futures plunged dramatically to a day’s low of Rs 48,951 per 10 gm. Futures for silver fell 0.4% to Rs 56,194 per kg. The value of the rupee compared to the dollar determines the price of gold and silver in our nation, and changes in the price of precious metals and other commodities are heavily influenced by worldwide demand.

Due to Global inflation, the price of Gold could dip further. The rate hikes and prices of commodities will take some months to get stabilised. Purchasing Gold during this period can become a huge asset.

GOLD RATE TODAY IN MAJOR CITIES

City	22 Carat (Per 10 GM)	24 Carat (Per 10 GM)
Ahmedabad	Rs 45,850	Rs 50,020
Bangalore	Rs 45,850	Rs 50,020
Bhubaneswar	Rs 45,800	Rs 49,960
Chandigarh	Rs 45,950	Rs 50,120
Chennai	Rs 46,260	Rs 50,460
Coimbatore	Rs 46,260	Rs 50,460
Delhi	Rs 45,950	Rs 50,120
Hyderabad	Rs 45,800	Rs 49,960
Jaipur	Rs 45,950	Rs 50,120
Kerala	Rs 45,800	Rs 49,960
Kolkata	Rs 45,800	Rs 49,960
Lucknow	Rs 45,950	Rs 50,120
Madurai	Rs 46,260	Rs 50,460
Mangalore	Rs 45,850	Rs 50,020
Mumbai	Rs 45,800	Rs 49,960
Mysore	Rs 45,850	Rs 50,020
Nagpur	Rs 45,830	Rs 49,980
Nashik	Rs 45,830	Rs 49,980
Patna	Rs 45,830	Rs 49,980
Pune	Rs 45,830	Rs 49,980
Surat	Rs 45,750	Rs 50,020
Vadodara	Rs 45,830	Rs 49,980
Vijayawada	Rs 45,800	Rs 49,960
Visakhapatnam	Rs 45,800	Rs 49,960

Gold Price on September 16, 2022

How is the Gold rate determined?

The price of Gold depends on the following 6 fundamentals:

The Central Bank’s activities, including the purchase and selling of gold.
Inflation in the US and throughout the world is being brought on by the growing money supply.
US real interest rates in relation to costs and wages. As a result, financial repression takes place.
Dual deficits resulting from trade imbalances with the US and growth. A fear component is the outcome.
The demand for certain products and variations in the cost of other commodities. indirect pricing based on manufacturing costs.
Using the supply and demand equation to determine production, demand, or inventories

Gold prices are fixed internationally in US dollars, euros or in pounds sterling. The major gold exchange in India is regulated by Multi Commodity Exchange (MCX), Mumbai. Over the years, gold has proven to be the ideal inflation hedge. More and more investors are considering gold to be a great option for investment.

Should you invest in Gold?

Gold can help you diversify your investment. As gold has high liquidity, you can exchange it for cash at any time. Or you can even get a loan against Gold. Gold can be volatile if you are investing it for a short time. But in the longer-term gold can give you more return. Also, the gold price will never deteriorate with time and will always have some value. Investing in Gold is worth it.