Gold Rate Today in Junagadh

Junagadh is a small city surrounded by mountains and forests. It is located in Gujarat's western state, at the Girnar Hills' foothills. The name 'Junagadh' translates to “old fort." It comes as no surprise, therefore, that Junagadh has a rich historical backdrop. This backdrop also serves as a determiner of gold trends in Junagadh. People in this town purchase gold on different occasions—sometimes for festivities and sometimes as an investment.
 

When it comes to the matter of gold demand in Junagadh, it is nowhere near the demand in metro or tier-one cities. The price of gold in Junagadh is often slightly higher because of the low volume of transactions.

Consumption patterns back the demand for gold in Junagadh. For instance, there is a rise in the demand for gold in Junagadh during weddings and the festive seasons. Continue reading to learn more about Junagadh gold prices.

How Does the GST Impact Gold Rates in Junagadh?

With the Goods and Service Tax (GST) implementation, the effective price of gold has increased throughout the nation, and Junagadh is no exception.

Earlier, we had to pay 1.5% value-added tax (VAT) and 1% excise duty. Now, a 3% GST charge is imposed on the price of gold. Apart from that, there is also a 12.5% customs duty and a 5% Making Charge on gold.

How to Invest in Gold in Junagadh

There are several methods through which you can invest in gold in Junagadh. They can be broadly divided into physical gold and digital or dematerialised gold.

• Physical gold refers to the conventional methods of investing in gold. These methods have been passed down through generations. This includes buying gold jewellery, gold coins, and gold bars.
• Digital gold includes the entire gamut of new-age investment methods. From ETFs to mutual funds, from digital gold to gold bonds, the list goes on! You can choose whichever method you are most comfortable with.

You can buy digital gold directly from platforms like Paytm and PhonePe. Alternatively, you can trade gold ETFs through your stock broker.

Gold bonds are launched by the government of India. You can buy a maximum of 500 grammes of gold bonds per year. These are very safe investment assets.

Factors Affecting Gold Price in Junagadh

Let's take a look at the main factors that influence the price of gold in Junagadh:

International Markets

Nowadays, most countries are intricately connected through numerous trade routes and supply chains. Policy decisions in different countries also have an impact on the global markets. The international gold market is no different. We see frequent fluctuations in the price of gold in the global markets, affecting the gold prices in Junagadh.

For example, when there are internal issues in the world's largest producers of gold, including China, Australia, Russia, and South Africa, the corresponding ripple effects are felt in gold markets worldwide, including Junagadh.

Central Bank Policy

The Reserve Bank of India uses its policy to influence investment assets in the market. It controls the amount of liquidity and the level of inflation in the economy.

For example, if there is a lot of money in the hands of people, it will result in high demand for consumer products and high inflation. To solve this issue, the RBI will have to encourage people to invest their loose cash instead of spending it.

The RBI can raise interest rates and incentivise people to buy fixed deposits. This will prompt people to choose FDs over gold. Consequently, the demand for gold will fall. The opposite happens when the RBI lowers interest rates.

Demand and Supply

This is one of the most important determinants of the price of gold in Junagadh. If the demand for a commodity is more significant than its supply, then the price of the commodity starts to rise until equilibrium is attained. Similarly, when the supply exceeds demand, the price falls until they are equal.

We see high demand for gold during the city's festive or even the wedding season. For instance, during occasions like Dhanteras and Diwali, people like to buy a lot of gold, which can also increase the price in Junagadh.