Gold Rate Down Today: Gold prices fall as soon as the market opens; know the rates for 22 and 24 carat gold.

If you were planning to buy gold today, you might have some good news. As the market opened this morning, gold prices saw a noticeable drop. This dip comes after a period of high volatility where the yellow metal was flirting with record high numbers. For those keeping an eye on the market, this could be an interesting opportunity.

In simple terms, when the market opened, both 22-carat and 24-carat gold became a bit cheaper. This movement is largely in line with what is happening globally. International spot gold was seen struggling around the $4,990 per ounce mark, taking a hit of about 1% in early trade .

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Let’s break down what this means for you if you are looking to buy jewelry or invest. Below is a quick overview of the latest rates. Remember, these are standard market rates, and actual prices at your local jeweller might vary slightly due to making charges and GST.

Why Did Gold Prices Fall This Morning?

You might be wondering why gold, which is usually considered a safe bet, suddenly becomes cheaper. There isn’t just one reason; it’s usually a mix of global factors. Here is a simple breakdown of why prices softened today.

• The Dollar is Getting Stronger: Think of gold and the US dollar sitting on opposite ends of a seesaw. When the dollar gets stronger, gold usually gets cheaper. This happens because gold is priced in dollars globally. If the dollar becomes more valuable, it takes fewer dollars to buy the same ounce of gold. Recently, the US dollar has shown strength, which puts pressure on gold prices .

• Holiday Season in Major Markets: This is a bit of a technical reason, but it’s important. Major markets like the US (for Presidents’ Day) and China (for the Lunar New Year) have been on holiday. When big players are out of the market, trading volumes are low. In low liquidity, even a small number of buy or sell orders can swing prices around more than usual. Right now, we are seeing some selling pressure .

• Interest Rate Expectations: Gold is an asset that doesn’t give you interest or dividends. If banks keep interest rates high, people prefer to keep their money in savings accounts or bonds that do give interest. Recently, there has been uncertainty about how soon the US Federal Reserve will cut interest rates. If rates stay higher for longer, gold becomes less attractive to big investors, leading to price dips .

What is the Difference Between 22 and 24 Carat Gold?

In the table above, you saw rates for two different types of gold. If you are heading to the jewellery store, it is very important to know the difference.

• 24 Carat Gold: This is pure gold. It is 99.9% gold with no other metals mixed in. Because it is so soft, it is not usually used to make everyday jewellery like bangles or chains, as it can bend or scratch easily. It is mostly bought for investment purposes, like coins or bars.

• 22 Carat Gold: This is the standard for jewellery in India. It contains 91.67% gold, and the rest is other metals like silver, copper, or zinc. These metals are added to make the gold harder and more durable so that it can hold its shape when made into intricate jewellery designs.

Should You Buy Gold Now?

This is the million-dollar question. When prices drop, people often wonder if it is a good time to buy or if they should wait for an even bigger fall.

If you are buying gold for a wedding or a festival, a small dip like this is always welcome. It means you get the same piece of jewellery for a little less money. Since you are buying for the long term, short-term fluctuations don’t matter too much.

For investors, analysts are a bit divided. While Goldman Sachs is still bullish on gold, expecting it to possibly hit higher levels by the end of the year, they also note that this isn’t a “supercycle” where prices will just go up forever without correction . The current dip is seen by some experts as a “correction,” which is a healthy part of any market. Some forecasts suggest that if gold can hold its support levels, it might eventually head back toward the $5,280 mark .

The key takeaway is to not panic. Market ups and downs are normal.

FAQs for Gold Buyers Today

1. Why is gold rate different in different cities?
Gold rates can vary slightly from city to city. This is mainly because of local taxes (like VAT or GST) and the demand in that specific region. Bigger cities with high competition might have slightly different making charges compared to smaller towns.

2. Does the gold rate include GST and making charges?
No. The rates quoted in the news and the table above are for the basic price of gold. When you buy jewellery, the bill will include the price of gold, plus the “making charges” (which is the labour cost for the design), and then 3% GST is applied on the total amount.

3. What is the difference between the spot price and the retail price?
The international spot price is the current price at which gold can be bought or sold for immediate delivery. It is the base price. The retail price you see at the jeweller is the spot price, plus import duties, plus the jeweller’s margin.

4. Is it better to buy gold coins or jewellery?
It depends on your goal. If you are buying as an investment, gold coins or bars are better because they have low making charges. If you are buying to wear or for a family occasion, jewellery is the way to go, even though you pay extra for the artistry.

5. Will gold prices fall further this week?
Market experts suggest that the price movement will heavily depend on the strength of the US dollar and the resumption of trading after the holidays in China and the US. Geopolitical events are also a wild card. It is difficult to predict day-to-day, but the overall long-term outlook remains positive for gold .