Gold Rate Today in Bhopal

Known as the "City of Lakes," Bhopal is the capital of Madhya Pradesh. The city is also known for its marvellous architecture, handicrafts, leather goods, ready-made garments, and exquisite embroidery. Bhopal is a culturally vibrant city that celebrates multiple festivals, and the people mainly believe in purchasing gold on these auspicious occasions. In terms of gold investments, the city of lakes is not far behind. Most gold purchases are driven by festivals and religious sentiments and peak during the wedding season. Bhopal residents typically invest in both physical and digital gold.

Difference Between 24 karat & 22 karat Gold 

Carat and Karat are two terms often used interchangeably and incorrectly. Carat is a unit of weight to measure gemstones, while karat measures the proportion of gold out of 24 parts in an alloy.

While 24-karat gold is the purest form of gold, with 99.9% purity, it is not ideal for jewellery design. If you wish to purchase gold coins or bars as an investment, then 24-karat gold is your best option. 22 karat gold contains 91.6% gold, with other metals such as copper, zinc and silver composing the rest of the alloy. It also implies that of the 24 parts, 22 parts are gold, and the remainder is a combination of other metals. The presence of other metals in the alloy makes it more durable and better suited for use in jewellery.

How is the Purity of Gold Evaluated in Bhopal?

The value of gold is defined by its purity. To avoid getting duped when purchasing gold and gold jewellery, it is crucial to assess and confirm its purity.

Here are some factors to look out for in gold jewellery to ensure the purity of the gold, as suggested by the Bureau of Indian Standards (BIS). This government authority certifies gold purity:

1. BIS Mark
   Gold jewellery that is hallmarked carries the BIS logo, which assures its purity. It also indicates that the purity was verified at BIS, the only laboratory in India authorised for gold certification.
2. Karat
   The purity of gold is measured in karats. 24 karat is the purest form of gold but is also highly malleable, making it unsuitable for use in jewellery. 22 karat, on the other hand, is alloyed with metals such as copper, zinc, and silver and can be used to make jewellery.
3. Jewellers Identification Mark
   Jewellery shops that sell gold jewellery also put their identification marks on the jewellery. Only those jewellers and jewellery manufacturers authorised by the BIS can add their identification marks.

Factors That Impact Gold Prices in Bhopal

Numerous factors impact gold prices in Bhopal. Some include:

Demand and Supply of Gold

Just like the prices of most commodities in an economy, gold prices, too, are governed by the laws of demand and supply. When the demand for gold rises, gold prices rise too. This can particularly be observed during festivals and the peak wedding season.

The gold supplies in the country are particularly affected by the central government's gold reserves. If the central bank purchases more, the gold supply in the country would drop. If the demand for gold remains unchanged during this time, it will push up gold prices.

Inflation

Indians have been investing in gold for years as a hedge against inflation. People tend to purchase gold as security when inflation rises., driving up the rates. Furthermore, when there is a rise in inflation, the value of INR falls compared to USD, the conversion rate increases and consequently, the price of gold.

Value of INR

The price of gold is originally determined by the London Bullion market. It is valued in USD, GBP, and Euros, and the value of INR affects gold rates. When the value of the rupee falls and the exchange rate increases, so do gold prices.

Fixed Deposit Interest Rates

Fixed deposits are the most popular tools for investing for most Indians. It also beats gold, making it the second most preferred investment method.

However, when the interest rates for fixed deposits fall, people prefer gold as their investment option. With an increase in demand for gold, the gold rate rises too.