Ahmedabad: When the market continued at Ahmedabad after the Diwali break, the price of gold was once again enlarged to Rs 50,000 per 10 grams on Wednesday.
The last time the price of gold was at this level on July 30.
Bullist analysts and traders link a surge in gold prices to US dollar firming against Indian rupees on Indian rupees.
The US dollar level reached 74.4 against Indian Rupees on Wednesday.
“The price of gold has increased due to a marginal surge in international gold prices.
In the international market, the demand for gold has risen which caused a price increase.
In addition, when India Rupees depreciated against the US dollar, the effective price of gold in the Indian market would be higher,” said Haresh Acharya, Director, Bullion Association and Indian Jewelry (IBJA).
Even though the price of spot gold fell slightly to $ 1,825.6 (Rs 1.36 lakh approx) per ounce at around 6:30 p.m.
on Wednesday according to the World Gold Council, prices in the local market rose.
Even though there is a surge in prices, jewelry anticipates good demand in the coming days.
“As soon as the market continued the operation during Labh Pancham, the request remained optimistic when people came to buy bars because of Muhatat.
Customer footsteps at the jewelry store are good after the wedding season and people make a high-value purchase in a big way,” said Jigar Soni, President, Ahmedabad Association (JAA).
Overall, sales of the celebration season is good for jewelry throughout Gujarat.
It is estimated that 750kg gold is traded on the Pushya Nakshatra and Dhanteras Muhurats before Diwali, supported by buoyant muhatat purchases.
“People have realized the importance of gold as a class of assets during a pandemic and despite a better return in the class of other assets, both equity or mutual funds, Investor Faith remains intact in gold,” Soni added.