Gold Rate Today in Bikaner

Bikaner is a historical city situated in northern Rajasthan. It is known for its royal connections and unique dunes. The regal past of the town displays its opulence through the grand palaces and forts. In addition, the region boasts some of the best riding camels in the world, earning it the title 'camel country.' Another unique aspect of the city is the buzzing markets. Besides colourful local merchandise, they trade in various commodities, including gold.

Top Factors Influencing Gold Prices in Bikaner

Numerous factors influence the gold rates in Bikaner. Let's look at some of them:

• International Gold Prices
  Since India imports gold in significant quantities, any change in the international gold rates has a bearing on gold prices in India. If the global gold prices rise, the gold prices in Bikaner also tend to rise and vice versa.
• Rupee Vs Dollar
  If the Indian Rupee weakens against the US Dollar (USD), the gold prices in Bikaner will rise as gold is traded internationally in USD. Similarly, if the Indian Rupee strengthens vis-a-vis the US Dollar, the gold prices will fall.
• Inflation
  When inflation is high, gold prices tend to rise. Since gold is believed to be a hedge against inflation, people tend to hold on to gold in the face of a declining currency.
• Seasonal Demand
  The demand for gold increases during weddings and festivities. This surge in demand causes gold prices in the jewellery markets to rise.
• Monsoon Season
  Bikaner is surrounded by villages whose sustenance depends on agriculture. Hence, a good monsoon impacts gold rates in the city. A fruitful monsoon season leads to better agricultural yield, prompting farmers to invest in gold. This hike in demand drives up gold prices.
• Interest Rates
  Interest rates and gold prices share an inverse relation. When interest rates rise, people tend to sell their gold and invest in fixed-income instruments. As the demand for gold falls, the prices drop. Similarly, when interest rates go up, investors may prefer gold over fixed deposits, increasing the demand for gold and driving up prices.

Impact of GST on Gold Rate in Bikaner

The Goods and Services Tax (GST) has had a significant impact on the gold rate in Bikaner. Before GST implementation, buyers had to pay 1% service tax and 1% Value Added Tax (VAT). So, in total, they paid a 2% tax over and above the selling price of the jewellery.

After GST was implemented, the Government fixed the rate of GST on gold at 3%. So, although by a marginal scale, the gold rates in Bikaner did increase with GST implementation.

Moreover, if you want to make gold jewellery, an additional 5% GST on the making charges will apply.

So, GST has led to an increase in gold prices in Bikaner.

Impact of Central Bank Policies on Bikaner Gold Rate

Since the start of 2018, the Reserve Bank of India has introduced a series of policy initiatives that impacted the gold price throughout India, including Bikaner. These include raising interest rates and reducing the supply of Rupees in circulation, thus increasing the gold price.

Further, the Government of India has been trying to reduce its exposure to volatile financial markets by increasing its gold reserves. This has caused the gold rate to rise.