Retail Gold Prices Hit New Record Highs, As Global Prices Zoom

Gold prices were retailing at new record highs in select cities as international prices zoomed. Colin Shah, MD of Kama Jewelry writing in an article on goodreturns had predicted a rise in tariffs as well. "Gold prices in the international market have risen to levels of $1880/Oz as compared to $1815/Oz on February 27, basis which the last tariff value was changed to $586/10 gm," he had stated. In Bengaluru 22k gold was quoting at Rs 53200 per 10 grams, while in Chennai gold rates for 22k surged by Rs 700 to Rs 53900 for 10 grams. In Hyderabad gold for 22k was retailing at near record levels of Rs 5315 per gram. In Delhi and Mumbai the rates were almost similar at Rs 5330 per grams. 24K as is the case was trading at significantly higher levels across the Indian cities.

Gold rates unlikely to fall any time soon

Gold prices in Indian cities are unlikely to fall anytime soon. The collapse of the SVB in the US has led investors to take shelter in gold, which has now surged in the international markets. Gold in the global markets has now crosses $1908 an ounce. Remember, India does not mine gold and hence any rise in the global markets would certainly lead to rise in gold prices in the domestic markets as well. We all know that the rupee has a tendency to weaken, which puts even more pressure on gold prices. All in all, we believe that gold prices would continue to remain elevated as rising interest rates could even create more complications like the SVB Bank issues we have seen in the last few days. Gold has remained a perfect hedge against volatility in the global capital markets.

Over the last 1-year gold has given very good returns, and the momentum looks certain to sustain for the new few quarters. Rising interest rates normally lead to a decline in gold rates, but, this is not happening at the moment. At the moment, gold is in a sweet spot and the trend is unlikely to change.