Gold Rate: Gold prices are increasing very fast these days. It is believed that soon it can touch the mark of Rs 1,00,000. Gold is a metal that everyone buys. From all the customs of the house like marriage, engagement, Mundan to the adornment of women, gold has been a part of tradition for years. Nowadays, people are considering it as a good option of investment and due to this, they are making it a part of the portfolio. Whenever you go to buy gold, you must check the gold price of that day. But half Hindustan would not know that from the futures market to the spot price, how the price of gold is fixed.
How to decide the price of gold
The price at which you buy gold from jewelers is called spot rate ie spot rate. These expressions are fixed on the basis of multi commodity exchange (MCX).
How the prices are fixed on MCX
Gold prices on the MCX futures market are fixed keeping in mind the demand for gold in Indian markets, collecting supply data and inflation in the global market. Apart from this, the futures market also coordinates with the Bullion Market Association in London before fixing the price of gold. After this, these prices are fixed. The prices that are on MCX are declared by adding VAT, levy and cost.
These things also affect the price of gold
Both domestic and global economic and political decisions also affect the price of gold. For example, if the government in our country implements a new rule regarding the import of gold.
How are spot prices fixed
Spot price means the price at which you buy gold from jewelers, the members of the bullion association of most cities together decide at the time of opening the market. Due to the fixation of the price from the bullion traders of every city, there is a slight difference in their prices. Gold prices are fixed separately on the basis of carat.
How gold prices are fixed abroad
Gold prices worldwide are fixed in London’s bullion market. It is the largest bullion market in the world. Prior to 2015, London Gold Fix was the regulatory unit of gold fixed which used to fix prices, but after 20 March 2015, a new unit London Bullion Market Association was formed. It runs the ice administrative bench mark. This organization, along with the national level organizations associated with the governments of all the countries of the world, decides what the price of gold should be.