Gold Rate Today in Allahabad

Allahabad is one of the largest cities in Uttar Pradesh and the administrative headquarters of Allahabad District. Also known as Prayagraj, the place is believed to be the site of the Ashvamedha Yajna - a Vedic ritual. It is also home to the iconic Kumbh Mela. A Hindu festival is held every twelve years.

Allahabad, a traditional centre of culture and trade, is known for its vibrant gold market. It has been a vital part of the city's economy for centuries. Most of the gold shops are located in the Civil Lines, Teliyarganj, and Chowk areas of the city. 

Multiple factors influence gold prices in Allahabad, like volatile equity markets, global recession, economic slowdown, central bank policies, and geopolitical atmosphere.

How is the Purity of Gold Evaluated in Allahabad?

The government of India has notified Allahabad as a mandatory hallmarking district. The gold jewellery sold in Allahabad must be hallmarked per Bureau of Indian Standards (BIS) regulations.

BIS is a government-backed agency that hallmarks gold in India, thus certifying its fineness and purity. BIS-licensed labs in Allahabad measure the purity of gold and hallmark it accordingly.

Alternate Gold investment options in Allahabad

Given its widespread appeal as a commodity and store of value, Allahabad is stocked with a wide range of gold in all its guises. Gold may be acquired in one of two ways: as an indirect financial instrument or as physical gold in jewellery, bullion, or coins.

Economic Exchange

People in Allahabad tend to favour financial plans centred on gold. Gold exchange-traded funds (ETFs) are a novel approach to capitalising on gold's attractive return potential. The present administration has also introduced a gold monetisation programme via which citizens can receive income from gold stored at home.

Over the counter

Most gold is transacted at both independent and high-end jewellery stores. Customers go to these establishments to purchase gold jewellery, coins, and bullion for speculative motives. Gold vendors see an increase in business during weddings and festival times. Regardless of the exchange rate, demand for the metal rises around Diwali and weddings.

Comparison Between 22-karat and 24-karat Gold in Allahabad

Here are the key points to compare between 22-karat and 24-karat gold in Allahabad:

• Purity level: 24-karat gold contains 99.9% pure gold, while 22-karat gold contains 91.67% pure gold.
• Objective: 24-karat gold is suitable only for investment purposes as it is too delicate to be used in jewelry. 22-karat gold is ideal for jewelry-making due to the presence of other metals besides pure gold that provide durability.
• Price: 24-karat gold is naturally more expensive than other variants due to the high levels of pure gold. 22-karat gold is less expensive than 24-karat gold.
• Usage: 24-karat gold is used in the manufacture of electrical and medical devices, while 22-karat gold is used in jewelry, coins, bars, etc.

Some Interesting Facts About Gold

Here are some of the most interesting facts about gold that will intrigue you:

• The hallmarking level for gold sold in the market is under 30%. According to the experts, there is a 10-15% discrepancy between the purest gold and the standard carat.
• Allahabad has a Jewelers Association that sets the gold price like every other city. The jewellers select whether or not to offer a discount based on demand and margin, using the daily gold rate set by the Indian Bullion and Jewellers Association (IBJA).
• Gold, one of the most liquid commodities, remains in circulation in the economy thanks to its presence in the reserves of the world's most important financial institutions, including the Central Bank.
• Instead of flow equilibrium, stock equilibrium is used to set the price.

Factors Affecting Gold Prices in Allahabad

Different factors affect gold rates in Allahabad. While some are domestic, others might be international. Before investing, we must analyse these factors in detail. Here is a walkthrough:

Demand and Supply

Gold prices in Allahabad may spike during festive seasons when the demand for gold is high. Festivals like Dhanteras, Diwali, and Chatt Puja witness gold prices in Allahabad surging. Similarly, prices may go down during the off-season.

International Gold Prices

Gold prices in the international market directly impact gold prices in Allahabad. India imports gold in large quantities. Thus, any change in the global rice of gold affects the rates in the country, including Allahabad.

Volatile Equity Markets

Unstable market conditions can strengthen gold prices in Allahabad. This is because investors tend to put their money in gold in the face of market volatility. The rise in demand drives up gold prices.

Inflation

Rising inflation causes gold rates in Allahabad to soar, as many investors believe gold acts as a hedge against inflation. When the demand for gold increases during inflation, the gold rates also go up.