Gold rate in Aurangabad

Aurangabad is a well-known city located in the state of Maharashtra. It is named after the late Mughal emperor, Aurangzeb. Aurangabad is popularly known as the "City of Gates" and is well-renowned for its tourist destinations, including the renowned Ajanta and Ellora Caves, both of which are included as UNESCO World Heritage Sites. 

Gold has traditionally been a symbol of prosperity for the people of Aurangabad, as is the case with the rest of the nation. This precious metal is a prestigious product bought in large and small quantities A high level of liquidity is provided, despite shifting market rates. As a result, it is a well-liked hedging asset.

Despite regular fluctuations in market rates, gold is consistently in high demand and has an upward price trend. Therefore, it is crucial to be aware of the current pricing, whether you want to buy gold or apply for a gold loan. This enables you to time your purchase and maximises your investment.

Factors Affecting Aurangabad's Gold Prices

Several regional and global factors influence the price of gold in the market. Its interest rates, market demand, taxes that apply to it, government-held reserves, and some seasonal buying patterns are a few domestic influences. Global inflation and currency value variations are examples of international causes.

Aurangabad's gold prices are different from those in other Indian cities. Again, this is a result of several circumstances, including:

1. Economic Stability Factor: Because gold is seen as a stable asset, its price tends to rise during economic downturns. Investors divert their capital away from riskier investment avenues and toward gold. Additionally, gold has a high level of liquidity and maintains its high value throughout unstable periods.
2. US Dollar vs. Indian Rupee: A strong US dollar causes gold prices in Aurangabad to decline as investors choose to place their money in the currency rather than the commodity. On the other hand, banks typically invest in gold rather than the declining dollar when the dollar weakens. This action is being taken to safeguard against any unforeseen circumstances. The price of gold rises as a result of this increasing demand.
3. Inflation: Gold's prices are impacted by inflation because it raises consumer demand for the metal. This is because, historically, gold investments have produced returns that have outperformed inflation.
4. Seasonal Pricing: The demand for gold in Aurangabad tends to increase during auspicious festivals, wedding seasons, and other occasions, resulting in higher prices.

Investment Options for Gold in Aurangabad

1. Gold Jewellery, Coins and Bars:
   As part of the Indian tradition, many people purchase physical gold coins, gold bars, bullion and jewellery for weddings and festivals to mark auspicious occasions.
2. Gold Exchange-Traded Funds (ETFs)
   A gold ETF tracks the actual gold, which can be represented either in paper or dematerialized form. This gold ETF is backed by highly pure gold and is priced at a gold weight of one gram per unit. Gold ETFs are listed and traded on the Bombay Stock Exchange Ltd. and the National Stock Exchange of India (NSE).
3. Gold Mutual Funds
   In gold funds, investors invest directly or indirectly in gold reserves. This is usually done through mining stocks, gold purchases, or gold-producing companies.
4. Sovereign Gold Bonds (SGBs)
   The Indian government issues these bonds, which are worth gold in grams. They are a good alternative to physical gold. When bonds mature, they must be redeemed in cash, and investors must also pay for the issue price in cash.

Which is a better investment option: 22K or 24K?

People in India purchase gold for jewellery, emergency savings (or portfolio diversity), and investments. However, due to its 99.9% purity, 24-karat gold will be the greatest choice for investments. Even though 24-karat gold is delicate and sensitive, it has a higher intrinsic value than 22-karat gold, which contains just 91.67% gold.

Always look for the hallmark certification when buying a 24-karat gold coin or bar to verify the purity. Additionally, buying gold from BIS-hallmarked jewellers will ensure that you receive the correct price for it when you sell it.

Impact of GST on Gold Rate

• The Goods and Services Tax is included in the final price of gold that the consumer must pay (GST). Jewellery made of gold is subject to a 3% GST.
• Additionally, the making charges are now subject to GST, which was not previously a part of the previous indirect tax system. These elements have influenced the price increase.
• In the Union Budget 2019 (effective as of July 6, 2019), the customs duty on gold was raised from 10% to 12.5%.