Why are the gold rates increasing day by day ?

Question

Gold is a precious metal but what is the reason behind hike in the rates of gold.

Answer 1

Gold is one of the most precious metal in Indian culture. People wear this metal almost on every occasion either on the festivals or on the family functions. Gold increases the beauty of a person. It also remarks the status of an individual.

Indians take gold as an investment so that they can use it during the financial crisis. Gold has been one of the primary and major modes through which Indians have parked their money.

Factors Affecting Gold Prices:

1. Import

India is the second-largest consumer of the precious metals. A large amount of gold is imported everyday to meet the high demand and this import duty plays a crucial role in affecting the price of gold.

2. Indian Jewelery Market

As already mentioned above, gold jewelery is weared on religious festivals and wedding. So, during the festivals and weddings, the demand for gold increases and that is how gold price gets boosted.

3. Demand and Supply

Nowadays, people started investing in Gold. As the demand for this metal increases, the price increases since the supply is relatively scarce. This may be the factor for increasing of the gold rates.