For centuries, gold and Dhanteras have been like bread and butter, or the carriage and the horse – one cannot be separated from the other. Indians have traditionally purchased gold during the festive days of Dhanteras and Diwali.
But this year could be a bit different from earlier years. The price of gold has been continuously rising for more than a year and has shot through the roof, taking it beyond the reach of most people. Therefore, a look at the prices of the yellow metal is in order as Dhanteras will be celebrated on October 29, just about a week from today.
Scary rise of gold price in 7 days
Just see how gold prices have moved over the past 7 trading days – Rs 78,232 (October 22); Rs 77,968; Rs 77,332; Rs 76,713; Rs 76,502; Rs 75,687 and Rs 76,132. This ia according to the database of India Bullion and Jewellers Association.
The woes for the buyer don’t end here. Please remember that gold carries a 3% GST (Good and Services Tax). In other words, if you wanted to buy gold on October 22, you have to pay Rs 78,232 + 3% of 78,232 = Rs 80,578.
This means the much-speculated rate of Rs 80,000 for 10 grams of gold has been breached well before the end of 2024, if not in the template retail prices, certainly for the buyer.
Unchecked rise of silver prices too
Now watch the movement of the silver prices.According to India Bullion and Jewellers Association information, the price of silver (1 kg) in the 7 previous trading days are as follows – Rs 97,635 (October 22); Rs 97,167; Rs 91,935; Rs 90,568; Rs 91,254; Rs 89,578 and Rs 90,500. The 3% GST applicable on silver also takes the prices past the Rs 1 lakh per kg mark.
Experts have been predicting that the march of gold prices northwards will continue due to the combined weight of 3 factors. These are the geopolitical tension in West Asia and Russia-Ukraine that continues unabated, the reduction of interest rates by the US Fed and other central banks of key economies such as the ECB (European Central Bank) and the uncertainty centering US presidential polls. A lot of speculation took place for the bigger part of the year as to whether the price of gold will breach the psychologically crucial Rs 80,000.
