Indian Gold Prices Surge Amid Global Inflation Trends
Gold prices in India have been on the rise over the past few days. As of September 21, the indicative national rate for 24K gold has reached ₹15,568 per gram, a ₹125 increase from the previous day's price of ₹15,443. The rate for 22K gold also increased to ₹14,270 per gram, while 18K gold was quoted at ₹11,676 per gram on September 21.
The rates vary across major Indian cities. In Chennai, Mumbai, and Delhi, the prices were all ₹15,568, ₹14,270, and ₹11,676 for 24K, 22K, and 18K gold respectively. However, in Kolkata, Bangalore, Hyderabad, Thiruvananthapuram, and Kerala, the prices differed slightly.
The article also discussed how inflation affects gold prices in India. According to the text, while higher inflation can influence gold prices, it is not a major determinant of domestic gold prices. The more important factor is how inflation affects interest rates, particularly in the US. When inflation rises sharply in the US, the Federal Reserve may respond by raising interest rates, making interest-bearing assets more attractive compared with gold.