Gold price in India has dropped slightly on 28 April, 2025, with the 24 karat gold standing at Rs.9,753 per grams and 22 karat gold priced at Rs.8,940 per gram. Here are some reasons of the price of gold dropped in India:
Reasons of the price of gold dropped in India:
- Global Economic Impact:- The strength of the US economy has kept the rate higher, reducing the appeal of non-yielding assets like gold.
- Stronger US dollar:- The US dollars appreciated by 0.3% against a thousand of currencies. A stronger US dollar can make gold more expensive for other countries, reducing their interest in purchasing it.
- Easing US-China trade:- Improved hopes around trade talks between US and China to have reduce the demand for safe heaven to assets such as, gold and silver.
Impact on Indian Market:
- Increased Affordability:- Falling prices of gold has made it more accessible for Indian customer to purchases from buyers, who postponed their buys due to high rate of gold.
- Relief for current account deficit:- India import most of it's gold outside of the country, price drop of gold reduced the import bill, which is going to favor in India's current account balance.
- Jewelry stocks gain:- Companies like, Kalyan Jewellers benefited due to expected higher volume.
- Physical Demand:- Despite having increased physical demand, the overall decline in global gold rates has overweighed local demand pressure.
It's worth nothing that gold rates can fluctuate significantly, so these prices might change time to time.
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