Bangalore Gold Rate Above Rs 1.61 Lakh, Silver Slips; Why This Expert Says Rally Is ‘Divorced from Fundamental

Bangalore Gold Rate Today: Gold prices in Bengaluru extended their gains for the fourth straight session on Tuesday, February 24, with 24-carat, 22-carat and 18-carat rates inching higher. In contrast, silver prices in the city witnessed a sharp decline during the day. The mixed trend in domestic bullion rates followed a phase of price correction in the international markets.

As Bangalore gold and silver rates are closely tracked by investors and retail jewellery buyers, here are all the details to know about it.

Bangalore Gold Rate Today

The price of 24 karat gold in Bangalore surged by Rs 43 per gram to Rs 16,178 per gram on Monday, February 24. The rate of 22 karat gold in Bangalore increased by Rs 40 per gram to Rs 14,830 per gram. Meanwhile, the rate of 18 karat gold in Bangalore surged by Rs 33 per gram to Rs 12,134 per gram.

"Gold is continuing its recovery as it advances further with renewed buying interest. Although the recovery has been sharp, gold seems to be regaining its upward momentum as investors seem to be regaining confidence after the recent correction from last week," explained Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.

Bangalore Silver Rate Today

The rate of silver in Bangalore declined significantly on Tuesday. Silver rate in Bangalore fell to Rs 285 per gram and to Rs 2,85,000 per kilogram on February 24. Silver prices in Bangalore remained significantly volatile in the last two months.

"Silver is advancing along with gold as it registers a sharp recovery from its previous levels. The sharp recovery in silver suggests that risk appetite has improved, and industrial demand is also expected to pick up. Although the volatility in silver prices is expected to remain wide, the current trend suggests that buyers are also making a comeback," Kamboj added.

Rise and Fall of Nations' Author Ruchir Sharma Says Gold Trading 'Divorced From Fundamentals'

Rise and Fall of Nations' author, and famous investor, Ruchir Sharma, recently expressed that the gold rally has entered into a 'storybook stage', where prices are more dependent on 'investor demand' and 'story of global risk and uncertainty'.

In his columns at Financial Times, Ruchir Sharma wrote that gold is being driven largely by financial demand. While remaining 'agnostic' on gold price rally, Ruchir Sharma wrote that it is difficult to decode the gold price outlook in a market that is "divorced from fundamentals and driven by an increasing numbers of random stories".