Gold prices in India has raised due to factors including an increase in global demand, especially from central banks, pushed up prices in the domestic market.
Jewellers at the Zaveri Bazaar, one of the largest and oldest gold markets in India, said the price, inclusive of the 3% goods and services tax (GST), touched Rs. 33,800 on Tuesday.
Gold’s price is well above the high of about Rs. 30,600 around November 2016 when the government announced demonetisation.
“Central banks of many countries like Russia, Turkey, along with a few other smaller economies that have seen currency issues, are buying gold, thereby pushing up the demand,” said Kumar Jain, vice-president, Mumbai Jewellers Association.
A reduction in the quantum of mining is adding to price pressures, he added.