Gold Continued Its Downward Spiral

By Author: ruchi jain
Total Articles: 123
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Just like the price of every other commodity, the gold prices also fluctuates from time to time, therefore it is even noticed that the gold prices are gathering all-time new peak every day.

The usual benchmark for the price of gold is known as the London Gold Fixing via telephone, it is the procedure by which the price of gold is set on the London market by the five members of the London Gold Pool.

Furthermore, the price of gold is determined twice a day in London where a group of bankers get together and 'fix' the price of gold. The price then changes by the hour and moves up and down depending on various influences and perceptions of the value of gold.

In addition, the price fix is determined in Pounds Stirling and is then converted, by various markets, into the currency of their country. Commonly, around the world, the price of gold is perceived in US dollars and Euros.

According to the sources the gold price in Delhi has touched an all time record with Rs. 28921.88 per 10 gm for 22 carat gold whereas, the price for 24 carat gold has declined to Rs. 31070.00 per 10 grams in India.

Whereas ...
... in the national capital, Gold continued its downward spiral for the fourth straight day in the bullion market by losing Rs 40 to Rs 31,480 per 10 grams on poor demand due to 'Shradhs' and a weak global trend.

We usually notice the rise and downfall of gold prices but do we ever emphasized on the facts which causes this fluctuation. Yes there are few factors which causes the up and down fluctuation of gold rates. The factor comprises of Personal and Industrial Demand which include the demand for jewellery, which consumes two thirds of the annual gold production. India is responsible for 27% to the demand.

The second basic factor is War and National emergencies, though war reduces the need for gold, because people are less willing to invest, and they are probably more occupied with struggling to survive.

Apart from this any favorable or unfavorable Government policy directly affects current gold prices in India. Due to low bank deposit interest rates, gold investment in India is a preferred method over any other investment mechanism.

Moreover, the value of the US dollar is also one of the major factors affecting gold price in India today. When the dollar is weak, the spot price of this precious metal is on the rise and vice versa.

Author is giving information about Gold Prices and gold rate in Delhi. For more detail log on to Khojle where you will find the currnet price of Gold and sliver.