”Turbulence in Gold Prices in Delhi, Kolkata, and Chennai: Is Buying During this Period of Volatility a Good Idea?”
Gold Prices Today cause Chaos in Major Cities: Delhi, Mumbai, and Kolkata Created a Frenzy around the Precious Metal’s Prices and Were Eager to Purchase
In the previous month, the price of gold saw a big surge all across India on February 23, and it left buyers frantic in cities like Kolkata and Chennai. The incessant prices expanding have opened the borders to a global debate. Seeking refuge during uncertain times combined with a dropping rupee allows one to wonder – Is the ideal time to purchase now and hinder their profits or let it all be during the dip?
City-Wise Gold Rates: (24-karat per 10 Grams)
Delhi: ₹65,300 (+1.8%)
Mumbai: ₹65,150 (+1.7%)
Chennai: ₹65,450 (+1.9%)
Kolkata: ₹65,200 (+1.6%)
What is Driving the Price Movement?
Demand for Gold During Wrighting Season: While jewellers’ reports and spending celebrated, an ample 20% increase in spending happened during the dip because the prices almost touched record heights.
The Struggle of Rupee: The Indian rupee’s closeness to 83 against the USD made local gold prices more expensive and raised the cost of imports.
Global Market Frustration: Divides between the US and the rest of the world regarding changes along with the indicators from him and the central bank have also contributed towards record meta-level style rates of gold prices.
Emotional Rollercoaster For The Buyers
Meena Sharma, a mother to a bride, sighed in Delhi’s Chandni Chowk, “Last month, we had a budget of 5 lakh for gold, now it is 5.4 lakh. Should we blindly purchase or are we better off waiting?” On the other hand, buyers like Rohan Kapoor in Mumbai also seem to be in a fix. “Gold seems to be a safe bet, but the prices are unimaginable,” he said.
What is the expert take, Buy now or Wait?
“Do not buy blindly”, says Rajesh Khanna, senior analyst at WealthSec. The short term volatility is alarming. Try purchasing in bulk only after a retirement to 64000 levels. On the other hand, Geeta Menon, a jeweler from Chennai says demand should be at a peak. Weaker rupee will exacerbate and by the time Holi comes around, the price may reach 66000.
Regional Trends: Mumbai and Delhi Need More
Mumbai: Increased investor activity resulted in higher liquidity which led to a 15% rise in gold ETF investments this week.
Delhi: Retail customers are ordering more lightweight designs due to budget constraining factors.
South India: Rates in Chennai left other cities in the dust owing to sky high importing taxes, failing logistics, and costs.
Will The Rally Sustain?
Many market watchers and traders say there will be turbulence in the following weeks. Anil Kumar From MCX is quite stern with his statement saying, “Next weeks US inflation report might shift the market severely, which is not a good sign. Traders ought to hedge their bets.”
What Should You Do?
For Investors: Try staggered SIPs for gold ETFs or sovereign bonds.
For Buyers: Try to get around the prices by using the old jewelry exchange offers.
The Big Question:
With gold hitting record prices at the moment, our first question is if we are seeing the beginning of a long bullish run, or a bubble that is set to burst soon?