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  2. Sep 6, 2024 · Because gold is generally dollar-denominated, a stronger U.S. dollar tends to drive gold prices lower, and vice versa. Real and expected inflation rates also affect the price of the metal.

    • Jean Folger
    • 1 min
  3. May 3, 2021 · Getty Images. 1. Demand and supply of gold is one of the main factors which determine the price 1of gold. 2. Gold is a hedging tool against inflation and hence price reacts to inflation numbers. 3. Interest rates have an inverse relationship with gold and typically, gold price drops when rates rise. 4.

    • ET CONTRIBUTORS
    • What factors determine gold rates?1
    • What factors determine gold rates?2
    • What factors determine gold rates?3
    • What factors determine gold rates?4
    • What factors determine gold rates?5
    • Global market trends. The global gold market plays a crucial role in determining the gold rate in India or for example, the gold rate in Kerala. Gold is traded worldwide, and its international supply and demand dynamics influence its price significantly.
    • Local demand and supply. In India, gold is not just a precious metal; it is a cultural symbol and an investment. Demand for gold jewellery, especially during festivals and weddings, can cause fluctuations in the gold rate.
    • Government policies and regulations. Government policies can have a significant impact on the gold rate in India. For instance, changes in import duties, taxes, or restrictions on gold imports can lead to fluctuations.
    • Exchange rates. Since gold is priced in US dollars globally, fluctuations in the Indian Rupee (INR) – US Dollar (USD) exchange rate can affect the gold rate in India.
  4. Oct 9, 2023 · One of the factors that impacts gold price is the demand for the yellow metal. India is one of the largest consumers of gold in the world. There is a big uptick in gold buying especially during festive and wedding seasons. Let us look at the factors, along with demand for gold, that impact the price of gold.

  5. Nov 21, 2023 · The price of gold is determined by the global balance of supply and demand. The gold market is dynamic, with many factors influencing the equilibrium price at any given moment. At its core, when demand outstrips supply, the gold price will rise and vice versa.

  6. Jan 12, 2023 · Key Takeaways. Supply, demand, interest rates, and investor behavior are key drivers of gold prices. Gold is often, but mistakenly, used to hedge inflation under the belief that gold will...

  7. Aug 7, 2023 · Several factors explain why gold price increase or decrease. These may include - Demand and Supply Dynamics. The balance between the demand and supply of gold is a key determinant of its price. Gold is unique as it retains its value over time, and its scarcity contributes to its attractiveness.