Gold is a hedge instrument most investors rely upon without any suspicion. Gold is considered as the safest instrument for investment. Market experts use it as a hedge against inflation. In the volatile global scenario, Gold has proven itself over and over again.
Gold prices reached to the climax in Aug 2011. Today it is 6.4 % up from its 2011 price level. It suffered a sharp plunge in Nov 2015. The price of gold in India today is ₹ 5,770 per gram for 22 karat gold and ₹ 6,295 per gram for 24 karat gold (also called 999 gold).
Government policies and global scenario impact the gold prices in the longer term. India is considered as one of the largest market of gold after China only.
How the gold price is influenced ?
There are various reasons that are behind gold pricing. Geopolitical conditions, economic events, Domestic supply and demand chain, currency fluctuation are topmost factors that influence the gold prices. For instance, gold is not only the investment asset but also hold a cultural relevance that add enriching value to the heritage aspect of the country. Subsequently, when the special occasions (e.g. dhanteras) approaches nearer, gold price tend to rise as the overall demand boosts up.