Last Updated on September 15, 2022 by

The gold rate in Pune is always changing, keeping track of world gold rates and market trends. With changes in the Indian economy and fluctuating political climate, Pune has become a prime destination for safe investments. Gold has been the preferred choice of investment in India regardless of prevailing gold rate making it a commodity which is always in demand.

Pune is a city with residents that depend on gold for their jewelry needs. However, there are no gold mines in Pune and they have to bring the raw material from other cities in India and also import it from other countries as well. This means that the price of gold here is slightly higher compared to cities which produce gold.

The City of Pune is considered one of the best places for safe-haven investments such as gold. Despite the surging gold prices, people’s participation in the bullion trade has not been deterred in the city. However, there are a lot of questions left unanswered that are related to the precious metal and investment in it. So here is a detailed explanation aimed at covering every possible topic that relates to bullion and its investment in Pune.

Below mentioned are the few factors that affects Gold Rates in Pune:


Gold is one of the features that can be considered as a solid investment year after year. People tend to buy it and hold on to it, because they know its value will increase over time. Since gold is a precious metal, it tends to increase in value much slower when compared with other commodities. When inflation increases, the demand for gold also rises because people will hold onto it until inflation settles down again; when inflation is low, demand decreases as well. 

The Monsoon Factor:

The gold rate in India is highly impacted by the rural demand for gold. The demand for gold in rural India is primarily driven by the monsoon. Rural population holds a 60% share in the overall annual consumption of gold, which is 800-850 tonnes. A good monsoon leads to a higher purchasing power amongst farmers and hence, higher demand for gold. Conversely, a bad monsoon season results in lower purchasing power amongst farmers and thus lower demand for it.

Weakening Dollar:

On the other hand, as gold prices rise, gold is often viewed as an alternative investment for investors who do not trust their currency. This can lead to a strengthening dollar and a decrease in gold’s price. Basically, when you see the value of one rise, it will naturally mean the opposite for the other.

Interest Rate Trends:

Since the demand for gold is closely related to the interest rates on financial products and services, it is important to understand gold prices in India. The present gold prices are a great and accurate indicator of the interest-rate trends in the country. If the rate of interest increases, customers tend to sell gold to gain cash value, which increases the supply of gold and leads to a reduction in its price. On the other hand, when the interest rates are low, customers have more cash at hand and thus potentially lead to a higher demand for precious metals such as gold, ultimately leading to an increase in price.

Jewelry Market:

The Indian jewelry market can be considered one of the most dynamic markets in terms of supplies, demands, and prices. An increase in the demand for jewelry (especially gold jewelry) during festivals and wedding seasons is a common phenomenon. The demand for gold increases due to its popularity as an investment option. Also, it is used for manufacturing consumer electronics such as mobile phones and laptops.


Despite its heavy symbolic value, people often consider gold to be nothing but a metal with no use or value. But this is not true. Gold has some practical uses, like in jewelry and electronics. Even so, it is not as useful as silver or copper for any other purposes, except for decoration. However, it does have monetary value and is traded on an open market called the Commodity Exchange. In other words, you can buy gold from anyone who sells it at a particular price on a daily basis (just like any other commodity).