On April 7, 2016, the spot price of gold was $1,328.40 and the spot price of
Key Highlights :
In India, gold prices are determined on several factors including global demand, interest rates, currency and government policies. India is the world's second-largest gold producer, with reserves totaling around 21,000 metric tons. India's gold market is dominated by imports, with exports accounting for only a small percentage. The country's main gold market is the London Gold Market, which is where most of India's gold is traded.
Gold prices in India are influenced by global demand, with prices rising and falling in accordance with demand from investors and consumers in other countries. In addition, interest rates play a role in determining the gold price in India. The Indian rupee, the country's currency, also affects the gold price. When the rupee strengthens against other currencies, it makes it more expensive for Indian gold to be exported, and this in turn drives up the gold price in India. Conversely, when the rupee weakens, it makes it cheaper for Indian gold to be exported, and this in turn drives down the gold price in India. The government's policies also have an impact on the gold price in India. For example, when the government increases its gold reserves, this drives up the gold price. Conversely, when the government reduces its gold reserves, this drives down the gold price.
Overall, the gold price in India is determined by a variety of factors, including global demand, interest rates, the rupee, and government policies.
