Gold Prices In India Fall As Global Trends Shift – Is It A Good Time To Buy?

Gold prices in India have changed their route even more as they declined in recent days, and people have definitely noticed it. As on November 16, the price of 24K gold per 10 grams in the Indian market is ₹ 75,650/- – down by ₹ 110 from the earlier day. Currently, 22K gold has been sold at ₹69,350 for 10 grams, whereas 18K gold has been sold at ₹56,740 for 10 grams. This decline has also elicited concern as the price is volatile in other countries or regions of the world market.

India has had one of the highest gold price around the world for many years now. But things are changing now. In shockingly, gold in India is at the moment cheaper than in other gold markets like UEAE Qatar, Oman and Singapore. At the same time, on November 16, 24K gold in Oman increased by ₹220 and cost ₹75,763 per 10 grams. Likewise, currently in Qatar, 24K gold has crossed ₹76,293 and thus, is again above the Indian prices.

Next, what do you suppose accounts for such a price disparity? People explain it by the shift of geopolitical risks to the foreground. Ongoing Middle East and particularly Arab-Israeli issuue — Gaza Strip has provoked investors to seek refuge in gold as a safe haven. Indeed, demand in such countries as Qatar and Oman has skyrocketed thus increasing the price of gold. On the other hand, price level in India is declining, although this was not much expected particularly when there is a festive demand for gold.

Gold prices across the world have been declining. Lately, price of gold in the US declined significantly; this was the worst week drop in three years. The global spot price of gold is that has now eroded by 4.5% and is currently trading at its lowest in nearly two months at around $2,563.25 per ounce. This analysts blame this on the economic figures particularly a strong US economic report and the feeling that the Federal Reserve may not be in a hurry to slice interest rates.

Thus, the US dollar has strengthen while interest rates on US Treasury bonds have increase making gold expensive to overseas buyers. This global decline in the prices of gold has come at the time when the prices hit an historic high in October. The price has fallen by nearly 7% in the last one month. However, this has not stopped gold from appreciating more than 24% in the year to date helped by global political turmoil and particularly the buying spree by the world’s central banks.

However, is such a decline a good time to buy products? Several people are pinning their hope on price volatility to reduce as the wedding season approaches in India. They are also focusing on the next meeting of the U.S. Federal Reserve in December this year. Even more, any specific signals regarding the stabilisation of rates in the future or their cutting could also have an impact on gold’s price not only in India but in the worldwide markets.

However, at the moment the prognosis for gold for India is not very optimistic. Though prices have retreated from the record peak they registered in October Indian public continues to screen a lot of interest in gold investment. While the new trends of lower prices are being embraced by some buyers, there is some skepticism that uncertainties of globalization may cause prices to rise back up again.

In other words there is no need to directly buy gold as they are available at cheaper prices though it requires knowledge on the global market trends. Therefore, geopolitical activities as well as changes in the US economic rules will possibly continue to posed the future prices of gold.