Gold price soars, price of sovereign reaches Rs 33,600

Gold price soars, price of sovereign reaches Rs 33,600

Agency News

Kochi, Apr 16: The price of gold reached an all-time high of Rs 33,600 for one sovereign while the price of one gram of gold is Rs 4,200. The price of one sovereign was Rs 31,600 on April 1 and within 15 days the price increased by Rs 2000.

Gradually the price rose to Rs 32,800 on April 7. "If this is the trend the price will touch the level of Rs 34000 before the month end," gold merchants said. On January one, the price of sovereign was Rs 29,000 and within three and half months it skyrocketed by Rs 4600.

In continuation with the domestic market, the price keeps on increasing in global market as well. Breaking the highest rate in seven years, the price of spot gold touched $1,750 per ounce. As the jewellery showrooms remain closed during lockdown, people were unable to buy or sell gold despite the price hike. The present spiralling rise in the price level was mainly because gold is considered to be a better option for investment in the present scenario where investors were changing their trend due to extension of lockdown by another 19 days and assuming many of the restrictions will continue till May 3.

Another reason is the value of rupee against dollar has been declining which again leads to upward trend in the price. Besides, the investors were showing keen interest in depositing their amount in gold exchange traded fund, according to estimates from Association of Mutual Funds in India and World Gold Council. The gold price has been steadily growing since 2005 when price of a sovereign was Rs 5040. In 2008, the price crossed Rs 10,000 for the first time and in 2010 it rose to Rs 15,000.

The price of sovereign jumped up to Rs 20,520 in 2011 and crossed Rs 25,000 by February. By January, gold price reached Rs 30,400. Later, it gradually increased in the following months and settled at Rs 33,600 now. (UNI)