How Do Local And Global Factors Influence The Gold Price Today In Kerala? - Loan Trivia


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Wednesday 21 February 2024

How Do Local And Global Factors Influence The Gold Price Today In Kerala?

 Gold holds immense significance in Kerala, being one of the largest consumers of this precious metal in India. Widely embraced as an investment and savings option, gold prices in Kerala are subject to a blend of local and global factors.

Understanding these influences is crucial for investors seeking insights into the gold price today in Kerala.

Factors affecting gold price today in Kerala

Gold demand in Kerala: Local demand is a pivotal factor affecting gold prices. Kerala, with its cultural emphasis on gold during festivals and celebrations, experiences consistently high demand. Increased demand invariably leads to an upward surge in prices.

Rupee-Dollar exchange rate: Gold is globally priced in dollars. Fluctuations in the exchange rate between the Indian Rupee and the US Dollar impact gold prices in India.

Import duty: The Indian government's imposition of import duty on gold directly influences its prices. Any increase in import duty contributes to a subsequent rise in gold prices.

Local taxes: Beyond import duties, state government-imposed local taxes also play a role. Escalations in local taxes contribute to an increase in gold prices, making it costlier for consumers.

International gold prices: Global gold prices are a crucial factor influencing gold prices in India. Changes in global prices, triggered by various reasons, have a direct impact on gold prices.

Oil prices: Indirectly linked, oil prices influence gold prices. Elevated oil prices lead to increased inflation, making gold an attractive safe-haven investment.

Gold prices in Kerala are shaped by an intricate interplay of local and global factors. Investors keen on gold should stay well informed about these factors to make prudent decisions in their gold investments.

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