Gold Price Update: Last week, gold made history in the Indian bullion market. On Friday, the national capital Delhi market closed at its all-time high of Rs 86,070 per 10 grams. Since the beginning of 2024, the price of gold has increased by about Rs 6,500 per 10 grams.
The question is, will this rise in gold prices continue, or will there be a decline? If you are also looking for the answer to this question, we will provide you with complete information and expert opinion. Let us know the real reason behind the rise in gold prices and its prospects.
Why did the price of gold rise to a record high?
Global instability and investor trends Investors traditionally consider gold a safe investment during economic uncertainty. Circumstances such as the Russia-Ukraine war, the US-China trade dispute, and the fear of a global recession have attracted investors to gold.
Strength of the dollar and the impact of the currency market: A strong US dollar increases the price of gold against other currencies worldwide. The rising dollar has also made gold expensive since India meets most of its gold needs through imports.
Impact of interest rates and inflationThe US Federal Reserve and other central banks have affected gold prices due to the interest rate hikes. Investors have also turned to gold due to high inflation.
Geopolitical tensions and central bank purchasesCentral banks worldwide are increasing gold purchases in their reserves. Countries like India, China and Russia bought large amounts of gold in 2023-24, leading to a price surge.
What happens next? Will gold prices fall?
India is the world’s second-largest consumer of gold, and the international market determines its prices. Experts believe that gold prices may stabilize shortly and even decline slightly.
Prices soften due to the stability of the US dollar. If the US dollar remains strong, gold prices may be under control.
Expectation of interest rate cutIf the central banks of major countries cut interest rates, then gold prices may be affected again.
Effect of stock market improvement: The stock market strengthens, and investors are ready to take it. Then, demand for gold may decrease slightly, and all prices are possible.
The effect of demand in festive and wedding season in India is that the demand for gold increases during Akshaya Tritiya, Diwali, and the wedding season, due to which its prices can remain stable.
What to do? Will it be right to buy gold or wait?
As a long-term investor, you can wait for a slight fall in gold prices.
If you want to buy gold for wedding or personal use, there is no need to wait much, as gold prices may remain at high levels.
Gold prices depend on global events, the dollar situation, and economic policies. Given the current situation, a slight decline is possible, but investing in gold for a long time is still considered beneficial. So, if you plan to buy gold, keep an eye on the market and invest at the right time.