The gold price has hit the highest in a year and in a day the price has increased by ₹200.
In last one week there was a hike of ₹520 for a sovereign of gold. Today gold is traded at as high as ₹22,720, in Kochi.
The price of one sovereign gold was ₹22,200 at the beginning of the month, and in the days that followed, the metal showed a continuous increase in price. Experts state that the price hike will continue and is likely to hit new heights.
On Thursday, 22Kt gold is traded at ₹2,840 per gram . The price of silver too has gone high.
There were reports that the gold prices are set to rise marginally post the rollout of the Goods and Service Taxes (GST) in July. It was expected that Kerala, the biggest gold consuming state in the country would see a welcome drop as the VAR tax was 5% while with GST it became 3%. It was reported that there would be 2% price drop in tax while buying gold.
However, the reduced tax rate did not come to the rescue of consumers as the rate continued to increase since the introduction of GST owing to changes in both domestic and international market. It is marriage season in Kerala, and this is one factor that keeps the price and demand high for the yellow metal. Meanwhile, the demand has gone up in the international market. China is shoring up its gold holdings which are yet another factor leading to a price hike.