Begins at Rs. 35,490 per 10 grams (22 carat) on Dec. 1, touches Rs. 38,600 on Jan. 8

Mysuru: Gold price in city has seen a steady increase since December 2019. It was Rs. 35,490 per 10 grams 22 carat on Dec. 1 and the price of the yellow metal on Jan. 9, 2020 was Rs. 37,470. Jan. 8 recorded a peak in prices when 10 gram 22 carat gold was sold at Rs. 38,600. 

From Dec. 1, 2019 till Jan. 9, 2020, gold prices per 10 grams have shown an increase from Rs. 10 to Rs. 50, Rs. 300, Rs. 700, Rs. 900 and Rs. 1,130. It hovered between Rs. 35,490, Rs. 36,550, Rs. 37,470 and touched a high of 38,600 on Jan. 8. Today’s price stands at Rs. 37,290 (22 carat) and 24 carat price stood at Rs. 41,250 per 10 grams.

This is the price of solid gold and if the yellow metal is purchased in the form of jewellery, a customer has to pay extra in the form of GST, making charge, design charges and wastage. These making charge, wastage and design charges depend on item to item at reputed jewellery stores and range from 3 percent to 32 percent. 

According to Manohar Babu of Tholasi Jewels, political imbalance and global uncertainty and tension between Iran and the USA have contributed to the hike in gold price. “Everyone wants to buy gold and the price never see a dip unlike other commodities. Gold fetches good returns when compared to land, bank deposit, shares and mutual funds. It is a better investment option,” he said. 

C.S. Amarnath of Lalitha Jewellery Mart, who is also the President of Shroff Merchants Association, said that the surge in gold price was due to tension in Middle East where US President Donald Trump has threatened a war against Iran.

Trump threatened “major retaliation” if Iran avenges the killing of Iranian Commander Qassem Soleimani and he warned of massive economic sanctions against ally Iraq if the country expels US troops based there.

Also, the Indian Rupee fell when compared to a US Dollar amid a spike in global oil prices, further increasing gold prices. India imports most of its gold requirements and gold price will remain supported (increased) on safe haven demand amid Middle East tensions,  said gold merchants. 

Nationwide, physical gold buying was subdued as a surge in price hit demand. Dealers were offering a discount. The domestic gold price in India includes a 12.5 percent of import tax and 3 percent GST. Gold imports into India fell 12 percent from a year ago, the lowest level in three years, as a rally in domestic price hurt demand. Gold price had surged nearly 25 percent in domestic markets last year.