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Sunday, 23 February 2020

Gold prices fluctuate, but how is gold determined?

Are you going to buy 'Khatrijee' gold? Is this a good time to buy gold? India ranks second in the world in terms of gold consumption.

What matters is how the high gold prices in the international market will affect Akhtarij this time. Also, the festival of 'Khatrij' is considered a sacred day for the purchase of gold. How will this time of year be better than last year?

Talking about the recent gold prices, after April 11, the price of 24 karat gold per ten grams has crossed Rs 31,524 level. But in April-May every year, the demand for gold is increasing. But do you know how gold is priced?

How is the price of gold fixed in India?

The country mainly imports gold through banks. The bank then sells it to the traders of the bullion market. It is priced in the international market at dollars per ounce. The daily value of the Indian rupee against the dollar is determined by converting it to grams

MCX Gold in India is the gold trading framework. However, prices are not fixed. The price of gold depends on factors such as its international market price, the dollar-rupee exchange rate, the timely conversion of gold and silver from the unit to gram in addition to demand-supply.

 Moreover, it is responsible for the economic upheaval in the world, including international relations, import duty, local taxes.

The international price of gold in the world is determined by the Gold Fixing Index. On the basis of which traders are trading gold. But these prices are fixed on the phone.

In fact, a group of banks call a conference twice a day to determine the price of gold. They set prices according to their clients' sales order. The price is fixed only when these banks agree with the price.

In 2012, the group consisted of five banks. These included HSBC, Deutsche Bank, Scotty Bank, Societe Generale and Barclays. But after some time Deutsche Bank was out of the group.

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