GOLD

Gold prices are determined by various factors and calculated through a combination of market dynamics, supply and demand, and geopolitical influences. Here’s a breakdown of how gold prices are calculated:

1. Market Demand and Supply

• The primary factor influencing gold prices is the balance between supply and demand. When demand for gold increases (for jewelry, investments, or industrial uses), prices tend to rise. Conversely, when supply exceeds demand, prices generally decrease .

2. Spot Price

• The spot price is the current market price at which gold can be bought or sold for immediate delivery. This price fluctuates based on trading activity on commodity exchanges, like the New York Mercantile Exchange (NYMEX) and the London Bullion Market Association (LBMA). The spot price is typically quoted in troy ounces .

3. Currency Strength

• Gold is traded globally, primarily in U.S. dollars. Therefore, fluctuations in the dollar’s strength can impact gold prices. When the dollar weakens, gold becomes cheaper for investors holding other currencies, often increasing demand and driving up prices (Devdiscourse).

4. Inflation and Interest Rates

• Gold is often seen as a hedge against inflation. When inflation rises, investors may turn to gold to preserve value, increasing demand and prices. Additionally, low interest rates make gold more attractive compared to interest-bearing investments .

5. Geopolitical Stability

• Uncertainty in global markets, political unrest, or economic instability can lead to higher demand for gold as a “safe haven” asset. During crises, investors often buy gold to protect their wealth, influencing its price upward​(Devdiscourse)​(The New Indian Express).

6. Gold Production and Mining Costs

• The cost of gold extraction, including mining expenses, can also impact prices. If production costs rise significantly, miners may reduce output, which can constrain supply and push prices higher .

7. Exchange-Traded Funds (ETFs)

• The popularity of gold ETFs allows investors to buy shares that represent a claim on physical gold. Increased investment in these funds can drive up demand and influence market prices (The New Indian Express).

Conclusion

Gold prices are a complex interplay of market conditions, economic indicators, and investor behavior. Keeping track of these factors can help understand current price trends and future movements in the gold market.

For a more in-depth analysis, you can refer to resources like Investopedia and Gold.org.

As of September 30, 2024, the gold prices in India are as follows:

• 24K Gold: ₹77,400 per 10 grams
• 22K Gold: ₹70,950 per 10 grams​(Hindustan Times)​(Hindustan Times).

These prices reflect a decrease from the previous day, as the market continues to respond to various economic factors. For the latest updates and prices in your specific city, you may want to check local jewelers or financial news sources.