BENGALURU: Here’s some good news for the yellow metal lovers. In what can add glitter to Dasara and Deepawali festivities, price of gold has been falling for the past five days. Trade analysts point out that federal banks in America are increasing their interest rates to fight inflation and people are investing more in dollars, which are the main reasons for the decline in gold price.
In Bengaluru, 10 grams of 22 carat gold was sold for Rs 46,550 on September 23 and on Tuesday the rate declined to Rs 45,850. Similarly, the price of 24 carat gold for 10 grams was Rs 50,780 on September 23 and on Tuesday it came down to Rs 50,020. The fall in gold price is unusual, as it normally goes up during Dasara and Deepawali festivals every year.
Speaking to TNIE, Prof S R Keshva of Department of Economics, Bangalore University, said this is a business cycle where such trends are seen. Calling it a short-term phenomenon, he said this is the right time to invest in gold. “Once this period is over, gold price will start rising,” he added. Price of gold in the international market has also fallen. “But the rate at which it has fallen is not reflected in the Indian gold market,” he said.
T A Sharavana, President of Karnataka Jewellers Association, said the fall in the gold price will benefit both jewellers and buyers, as it is coinciding with two festivals which are round the corner.