Gold Price in Kakinada today - 28 May

last updated on 28 May 2022

India

0(per gram) (16K)

Kakinada, the Andhra Pradesh city with the second-largest sprawling port in the country lies on the Bay of Bengal coast. The proximity to the waters naturally made it a trading post during the Dutch and British rule in India. The city’s primary source of income is through port-related activities, fishing, agriculture, and industrial units. Apart from this several IT and the base for ONGC’s Eastern Offshore Asset are found in this well-planned city. People in Kakinada are fond of gold as a commodity and look to buy it for wedding purposes. Gold rate in Kakinada is a key factor to take into account while customers buy jewellery. Kakinada has also produced some great Telugu film stars and scholars. There are some popular tourist destinations in and around the city like Kakinada Beach, Coringa Wildlife Sanctuary, Hope Island, Uppada Beach, and Shri Bhavanarayana Swamy Temple.

Gold Prices in Kakinada for different purity

PurityGold price 1 gramGold price 10 gram

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Gold Prices in Kakinada for last 7 days

DateGold price 1 gramGold price 10 gram
26 May, 2022₹ 5,400₹ 54,000
25 May, 2022₹ 6,000₹ 60,000
24 May, 2022₹ 6,500₹ 65,000
23 May, 2022₹ 7,000₹ 70,000
22 May, 2022₹ 7,500₹ 75,000
21 May, 2022₹ 6,500₹ 65,000
20 May, 2022₹ 7,500₹ 75,000

Effect of GST on Gold Prices.

The implementation of GST has particularly affected the prices of commodities like gold.

Effect of GST on Gold Prices

As per the new tax structure, the GST on gold is set at 3% for both finished and unfinished products, which will be paid by the end consumer.

Apart from this, the tax regime also levies an additional 5% on making charges of gold jewellery. The additional charges have upshot the price of gold as there were no making charges in the previous taxation system. This rate is, however, a revised version which was initially set at 18%. The initial GST on making charges would have affected the prices of the finished products massively since end-consumers had to bear all the expenses. However, the 3% GST, the 10% import duty, and 5% making charges have made the yellow metal’s price increase by 0.75%.

How is gold rate determined?

There are many micro and macroeconomic factors that determine the gold rates in India. Some of the factors that influence that gold rates are: gold production, inflation, government’s gold reserves, demand and supply of the gold commodity in the market, import rates, interest rates, taxes, local demand, etc. Since an unprecedented emergency is likely to arise at any moment, being a resident here, it is good to have an eye on the latest gold rates in cityname. The market price of the gold and the gold valuation offered by the lender is likely to vary. The lender calculates the average gold price of 22-Karat gold according to the rates from the past thirty dates. This is how the lender concludes on the gold gram rate. The value of the gold loan that you get is dependent on two factors – the average gold price and the lender’s LTV (loan to value) ratio. The RBI has also directed the lender to disburse up to 90% of the market value of the gold till March 31, 2021.

What is QE and how does it affect Gold Prices?

The intention behind applying quantitative easing is to counter the situation created by an economic slump. Typically, during an economic downturn, the demand for credit goes down and deflation hits. Even though central banks around the world use interest rate manipulation to tackle such situations, QE is usually their last resort.

Points to Know about QE

  • It is a part of a country’s designated monetary policy
  • Even though it existed for a long time, the recession of 2008 saw its implementation on a broader scale.
  • In QE, central banks print new currency to buy assets and inject more cash in the system.
  • It affects the value of a currency
  • It works effectively to counter deflation and stimulate an economy
  • QE is considered as a short-term measure
  • Quantitative Easing and Gold

    The relationship between QE and gold is inversely proportionate. It means when money is injected into the system, the price of gold goes down. Although extra money makes it seem like the gold prices are soaring, that isn’t the case.

    With the implementation of this tactic, the gold prices largely remain the same, grow but at a slower pace, or even go down during certain instances.

    Here Quantitative Easing Tapering is also vital to know about. It means when a central bank agrees to stop new currency printing, which results in a shortfall in the system. So, the flow of cash goes down, but the amount of gold remains the same. Hence, the price of gold increases steeply.

Difference between 18 Karat, 22 Karat and 24 Karat gold

Karat is the term that is used internationally to indicate the purity of the gold. The karat rate is directly proportional to the purity of the gold. As the karat increases, so does the purity of the gold. The difference between a 24 karat, 22 karat and 18 karat golds are explained below. The 24 karat gold is the purest form of gold that is available. Because of its purity, rather than using it to make jewelry, it is used for investment purposes. The 24 karat gold exists in the form of gold coins or gold bars. The 24 karat gold is followed by the 22 karat gold which is used to make jewelry. The 22 karat gold is a mixture of gold with alloys such as zinc, nickel, or silver. These alloys make the gold harder and fit to be fashioned into jewelry. The purity of the 22 karat gold is 91.67% pure. The 18 karat gold is the cheapest gold that exists. It is a mixture of 75% gold and 25% alloys.

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