Gold is one of the most valued metals in India and Indians are one among the largest consumers of Gold. The gold metal plays a special role in the country and is often considered auspicious. It is a reliable store of wealth and a symbol of prosperity. Gold has always been considered an important and worthy asset. The rate of Gold in India has been constantly fluctuating but the prices have mostly witnessed an upward trend and has seen a humongous growth.
Gold Price History
Gold has been in the market since the beginning. It has been used as an alternative currency or used as an asset against currency. The prices of Gold are generally very volatile and depend on a lot of factors. Let’s have a look at the past 30 year price history of Gold.
| Year | Price | Year | Price |
| 1991 | Rs.3466.00 | 2006 | Rs.8400.00 |
| 1992 | Rs.4334.00 | 2007 | Rs.10800.00 |
| 1993 | Rs.4140.00 | 2008 | Rs.12500.00 |
| 1994 | Rs.4598.00 | 2009 | Rs.14500.00 |
| 1995 | Rs.4680.00 | 2010 | Rs.18500.00 |
| 1996 | Rs.5160.00 | 2011 | Rs.26400.00 |
| 1997 | Rs.4725.00 | 2012 | Rs.31050.00 |
| 1998 | Rs.4045.00 | 2013 | Rs.29600.00 |
| 1999 | Rs.4234.00 | 2014 | Rs.28000.00 |
| 2000 | Rs.4400.00 | 2015 | Rs.26343.00 |
| 2001 | Rs.4300.00 | 2016 | Rs.28623.00 |
| 2002 | Rs.4990.00 | 2017 | Rs.29667.00 |
| 2003 | Rs.5600.00 | 2018 | Rs.31438.00 |
| 2004 | Rs.5850.00 | 2019 | Rs.35220.00 |
| 2005 | Rs.7000.00 | 2020 | Rs.48650.00 |
The fluctuations and volatility in the market shows increasing demand for Gold. Gold has several uses including its role as a jewellery, as an asset in Finance and Investing, in the field of Electronics and Computer, Dentistry and Medicine, Aerospace and as a medal or award.
Factors affecting the Gold Price in India
The volatility of Gold is affected by a huge variety of factors. Let us look into some factors that determine the rate of gold in India :
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Market situations
The financial market situation affects the rate of Gold in a significant way. The fall in the prices of Gold, leads to a boom in the market resulting in increased demand. Gold is also known for its steady character and is used to hedge Inflation. When the inflation is high, the demand of Gold will soar and so will the prices. Hence, a depression, a recession or a prosperity directly affects the market.
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Political environment
Any major political movement within the country or outside the country can significantly impact the price rates of Gold. The elections, any misshapen in the political environment, new movements or the policies can lead to change in the prices of Gold.
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Gold Reserves
The central bank of India holds currency as well as gold reserves. And the gold reserves held by the RBI plays a major role in affecting the prices of Gold in India. So, when the central bank starts holding and procuring more gold, the supply of gold in the market decreases which further leads to increase in the prices. Meanwhile the flow of cash in the market increases which empowers people to buy more Gold.
FAQ: Gold Price History
1. What is the current price of Gold and the trend ?
The price of Gold as on 14th August 2021 is Rs.47697.00. The prices have seen a positive and an upward trend.
2. What is the future price prediction of Gold?
The prices of Gold are constantly fluctuating and has seen a major rise since 2019, but it is predicted to fall in the upcoming months and witness a significant rise at the end of 2022.
3. What will the price of Gold be by the end of 2021?
The price of Gold is predicted to be around Rs.44261.00. The highest it can go is 46273 and the lowest it can stoop is 43800.
If you have any question about Gold Rate in India, Gold pice history, do let us know under comments.
