The gold price and the value of dollar generally move in just opposite direction. When dollar goes down in international market, gold emerges as an attractive alternate investment option and gains more value in market. The declining dollars make gold even more gleaming as an alternative investment option.
At present, the price of gold has gone up in markets across the country and crossed Rs 11,000 per 10-gram value amid surging global rates due to towering crude oil prices and diminishing dollar. In India, the soaring prices of gold created problems for the retail buyers ahead of the marriage season.
According to the report, gold price has gained maximum price rise of Rs 315 per 10 gram to Rs 11,230 in Kolkata market. In Delhi, the price of gold has gone up by Rs 290 to Rs 11,050. In Chennai, it went up by Rs 200 to Rs 10,890 while up by Rs 130 to Rs 11,030 in Mumbai.
The market analysts have said that the gold prices in domestic market follow the international prices and the international prices are being influenced by the rising crude oil prices and softening of dollar. The rise in crude oil prices generally results in great demand of gold.
The crude oil prices have just crossed the $100 per barrel mark in New York on Wednesday. At the same time, the US manufacturing index has gone down to a five-year low and softened the value of the US dollar against the other major currencies of the world and further led to gold rally in global and domestic markets as well.