Gold price sets new record; touches Rs 39,400 per sovereign
Gold price increased for the seventh day in a row in the state setting a new record. On Wednesday, the price of one sovereign of gold rose by Rs 200 and touched Rs 39,400. One gram of gold costs Rs 4925. The price of one sovereign will touch Rs 40,000, if the gold price rises by Rs 600.
On Tuesday, the gold price increased by Rs 600. There was an increase of Rs 3,600 in the price in July so far. The price hike was Rs 2,640 in a week and Rs 13,540 in a year. On July 28, 2019, gold price was at Rs 25,760 per sovereign.
The price hike in the international market is reflected in the domestic market as well. One troy ounce (31.1 gram) of pure gold is priced 1,957.84 Dollars. Though it reached 1,981 Dollars on Tuesday, later the price dropped due to market pressure.
The major reason for the continuous price hike of gold is the uncertainty in other markets resulting from the COVID-19 crisis. Also the issues between US and China influence the price of gold.