Today Gold Rate In Gaya

Factors affecting gold price in Gaya

The below mentioned are the factors that affect the gold prices in Gaya:

1. Demand and supply: The overall contribution of Gaya to global gold contribution is a minimum of 0.75%. This results in the import of gold in large quantities to meet the demand. With Increasing demand and reduced supply, the gold prices in Gaya record an upward trend.
2. Interest rate: When the interest rate of various term deposits, especially fixed deposits, tends to fall, investors prefer purchasing gold. When the demand for gold increases the price of gold increases as well.
3. Inflation: Gold has always been considered as a hedge against inflation, due to which gold tends to surge during inflation. This causes an increase in gold demand, thereby increasing the price of gold.
4. Currency value: The strength of the US dollar also influences the gold price in Gaya. If the dollar value weakens, the banks tend to invest in gold as hedge against inflation, which eventually increases the demand for gold. The rising demand for gold results in an increase in gold prices.
5. Seasonal price: In Gaya the gold prices often go up during the season of festivities, weddings, or other occasions. This is because people prefer buying gold jewelry during the festivities which again impacts the gold price due to rising demand and the price goes up.
6. Import cost: Maximum amount of gold is imported in Gaya as the production rate is much lower. Due to this, the import duty is imposed on gold which eventually increases the gold price in Gaya.
7. International price: When gold prices surge in the international market the price of gold also increases in Gaya. When the Central Bank purchase gold to hedge against inflation, the overall gold price across the globe increases.
8. State Taxes: The state tax is imposed on gold which varies from state to state. Due to variation in the tax amount the gold price also fluctuates and hence, impacts the overall gold price.
9. Mining or production cost: Gold mining is expensive as the process involves large utilization of energy which factored into price. This is also termed as production cost, which is added to the gold price, thereby increasing the overall gold price in Gaya.
10. Transportation cost: Gaya imports huge amounts of gold due to a lower production level. Due to this the transportation charges are imposed on the precious metal which are much higher than cities like Mumbai and Chennai as these are port cities.