Gold price expected to rise due to weakening rupee

New Delhi: Domestic gold price has surged as the rupee depreciated against the dollar. The rise in the price might affect the demand in the upcoming wedding season.

The price might continue upward trend if a surge is witnessed in the number of Omicron cases.

Economic Times has quoted a gold trade analyst Bhargav Vaidya saying that the gold price might witness a spike as it was seen in August 2020.

Gold price in Hyderabad

In Hyderabad, the price of 24-carat gold which was Rs. 48650 per 10 gram on December 1 has increased to Rs. 49420 on December 17.

A similar trend was also witnessed in the price of 22-carat gold. It increased from Rs.44600 per 10 gram on December 1 to Rs. 45700 on December 17.  

Other metro cities

A similar trend was also witnessed in other major cities in India.

During the same period, the price of 22-carat of yellow metal climbed from Rs. 47120 to Rs. 47,360 in Mumbai whereas, in the national capital, it surged from Rs.46750 to Rs. 47450 per 10 grams.

Impact of Omicron on gold price

An increase in the cases of Omicron, a variant of coronavirus, can lead to a rise in the gold price.

Whenever there is any uncertainty, some investors pull out money from equities and other forms of investments and start searching for a safe option.

Such investors prefer gold as it is considered a safe option of investment. However, such investment leads to the rise in the price of gold in Hyderabad and other metro cities of India.