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Gold rates depend on several factors especially in developing economies like India. Yesterday a huge rise in Gold prices was noticed even during weak stock market conditions. Currency rate fluctuations, international gold prices, inflation, local tariffs and interest rates are among the various factors that affect gold prices. U.S. economy has a big role in changing the economy of India. When the international gold prices fluctuate, Indian prices also witness a change. It changes every day except on Sunday when no trading is done. Inflation and gold rates are inversely related to each other. It is assumed that interest rates go higher when there is high inflation. Physical demand also plays an important role in gold prices. When there is good demand from jewelers gold gains momentum. If there is excess liquidity in the economy then the gold prices can go higher. Another big factor is when Central bank makes their purchases. Prices fluctuate when many central banks start buying gold. With current tensions in global economy: U.S. –China trade wars, Fed’s pending decision to raise repo rate, Trump’s Another statement on increasing tariffs on European Union’s products and coming Indian elections can affect the gold rates immensely. With Fed’s decision on raising interest rate, Gold prices will fall as people started investing more in government bonds to get good interest returns. This variation in prices will continue till the end of Lok Sabha elections and global tensions.