The sharp decline in gold prices in India persisted and Saturday, November 16 saw a comparable trend. The price of 10 grams of 24K gold is currently Rs 75,650, marking a decrease of Rs 110 in just one day. However, were you aware that while gold prices faced downward pressure in India, there was a significant increase in gold prices in markets in some countries? This is why gold in India is currently less expensive than gold in nations such as the United Arab Emirates, Qatar, Oman, and even Singapore.
Gold prices in India
The price of 24K gold decreased by Rs 1,100 to Rs 7,56,500 while the price of 10 grams dropped by Rs 110 to Rs 75,650. In addition, the price of 22K gold dropped by Rs 1,000 to Rs 6,93,500 for every 100 grams, while the cost of 10 grams of gold decreased by Rs 100 to Rs 69,350. Additionally, the price of gold in 18K dropped by Rs 800 to Rs 5,67,400 per 100 grams, with a decrease of Rs 80 to Rs 56,740.
Gold prices in Gulf countries
Meanwhile, the price of 24K gold in Oman has risen to Rs 75,763 per 10 grams, an increase of Rs 220, while in Qatar it has reached Rs 76,293 per 10 grams.
Gold prices in the UAE have reached new all-time highs. The cost of 24K gold in the UAE increased by Rs 24,712 and Rs 2,471 for 100 grams and 10 grams, reaching Rs 7,62,039 and Rs 76,204. Additionally, the prices of gold also increased in both 22K and 18K varieties.
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Gold prices in Singapore
Even though prices remained the same on Saturday, gold in Singapore continues to be pricier than gold in India. As of November 16, the cost of 24 karat gold weighing 10 grams is Rs 76,805. Gold can be purchased for SGD1,221 per 10 grams of 24K in the local currency.
Reasons for decline in Gold prices in India
The value of the US dollar increased significantly, causing gold to become pricier for buyers using different currencies, as Treasury yields rose to the highest levels seen since July. This mixture is causing gold prices to decrease.
Gold is commonly used as a protection against inflation, but an increase in interest rates reduces the attractiveness of holding assets like gold that do not generate interest. The surge in US Treasury yields, currently over 4.40%, coupled with a robust dollar, has reduced investor interest in gold.
Even though gold is currently facing temporary pressure, market analysts remain confident in the precious metal’s continued support. Gold is expected to receive technical backing at $2,540–2,520 per ounce, while facing barriers at $2,582 to $2,605 per ounce.
Exchange rate variances and increased import expenses for gold in these areas are also significant factors. Different factors like local market conditions, taxes, and logistics can influence gold pricing, resulting in the noticeable difference.
Growing tensions in the Middle East, specifically in Israel and Gaza, have heightened the attractiveness of gold as a safe-haven investment. This has caused an increase in prices in Gulf countries, where the demand for gold usually rises during times of uncertainty.
