Past instances when gold prices skyrocketed in India

Here are a few examples when gold prices hit the sky:

August 2013 – As the rupee hit an all-time low against US dollar in a day on August 28, 2013, the gold prices also hit record high of Rs 34,500 per 10 gram. This sudden increase in prices by Rs 2,500 in a day was the highest India had recorded. The probable reason for this was that the investors rushed to invest in gold anticipating an approaching financial crisis as Rupee value stumbled.

November 2012 – Gold prices recorded another high on November 26, 2012 as it went up to Rs 32,950 per 10 grams. The prices had reached Rs 32,900 in September, 2012 but that record was broken in two months. One of the biggest reasons of this surge was approaching wedding and festival season combined with a weak Rupee. The rising demand for gold and traders’ struggle to keep up with it made the prices go up.

December 2011- Growing tensions in the Middle-East and apprehensions of its impact on global economy led to increase in demand of gold. The commodity along with silver was seen as a favourable investment during the time of inflation and global unrest. Gold prices crossed the Rs 29,000 per 10 gramsto a historic high of Rs 29,155 per 10 grams on December 8, 2011. Again, what added to this rise in demand was approaching marriage season.

August 2010 – The standard gold prices hovered at around 18,900 to 19,000 rupees towards the end of the month. Indian household being the biggest consumer of gold in entire world sees surge in prices during festivals and wedding seasons as the demand suddenly increases almost every year.