Gold (24 carat) prices are down roughly Rs 4,000 per 10 grammes from their all-time high of Rs 54,380 per 10 grammes on April 18. According to the India Bullion and Jewellers Association, 24 carat gold sold for Rs 50,240 per 10 grammes on Wednesday (IBJA).
Domestic gold demand declined for numerous reasons. Global central bank interest rate hikes and rising US dollar and bond yields have pressured gold.
The US dollar and Treasury yield have been around two-decade highs since the Fed rate hike last month. After Russia invaded Ukraine in February, the US currency rose considerably. Gold falls when the dollar rises because it is dollar-dominated.
Due to the fall of the Indian currency, economists say domestic gold prices have not followed the global trend. On September 28, 2022, the rupee hit an all-time low of 81.94 versus the dollar. A weak rupee versus the US dollar raises domestic gold prices.