...It’s expected to go up further due to geopolitical tensions, say experts
“Governments keep gold reserves as a safeguard against instability. to combat inflation, prices continue to rise. recently, the market has been very volatile,” Srimani.
Gold is glowing like never before. With global uncertainties mounting, the price of the yellow metal has been soaring to unprecedented heights over the past few months. Gold prices in India have surged to more than Rs 88,390 for 24 karat. Those in the business predict that the prices will rise further.
So what’s causing this surge? Why are gold prices rising?
Pratiksha Prashant of Kishandas & Co. says, Gold prices are rising due to a combination of factors. “One major reason is the ongoing geopolitical tensions, particularly the uncertainty over tariffs in the US, which is driving safe-haven demand for gold,” she says. Additionally, the precious metal has benefitted from its perceived value as a hedge against inflation and economic uncertainty, says Pratiksha.
According to Pratiksha, one of the key drivers of gold price increases is the geopolitical tensions. “Escalating trade tensions between the US and China, as well as the ongoing conflict between Russia and Ukraine, have contributed to the rise in gold prices.”
Gold is on everyone’s mind
Gold is undoubtedly a category of assets that can provide you with a sense of fulfilment. It has been a consistent practice over the years. Sanjay Gulabani, director, P. Mangatram Jewellers, says gold has been on everyone’s mind lately. “The ongoing conflicts between different countries put a lot of pressure on markets. Besides, there are economic factors. Inflation is still a concern for many people, and there’s that big worry about a potential slowdown,” he points out.As for whether it’ll keep going up, that’s the big question, he says. “Honestly, it depends on how those uncertainties play out. If things escalate, if those economic worries intensify, then yes, we could see gold prices keep climbing. But if things start to calm down, if we see some positive movement on the economic front, then we might see a bit of a relief,” says Sanjay.
Should you invest in gold now?
“For Indian consumers, gold remains a cherished symbol of tradition. Hence our dowries consisted mainly of that,” says Srimani Mathukumilli, a jewellery and interior designer. “They are easy to liquidate during tough times. Those who enjoy buying jewellery will buy it at any price because they’ll hope it keeps going up. I don’t think prices will go down. When the way is only up, there’s no point in waiting,” adds Srimani.
According to Pratiksha, one of the key drivers of gold price increases is the geopolitical tensions. “Escalating trade tensions between the US and China, as well as the ongoing conflict between Russia and Ukraine, have contributed to the rise in gold prices.”
Gold is on everyone’s mind
Gold is undoubtedly a category of assets that can provide you with a sense of fulfilment. It has been a consistent practice over the years. Sanjay Gulabani, director, P. Mangatram Jewellers, says gold has been on everyone’s mind lately. “The ongoing conflicts between different countries put a lot of pressure on markets. Besides, there are economic factors. Inflation is still a concern for many people, and there’s that big worry about a potential slowdown,” he points out.As for whether it’ll keep going up, that’s the big question, he says. “Honestly, it depends on how those uncertainties play out. If things escalate, if those economic worries intensify, then yes, we could see gold prices keep climbing. But if things start to calm down, if we see some positive movement on the economic front, then we might see a bit of a relief,” says Sanjay.
Should you invest in gold now?
“For Indian consumers, gold remains a cherished symbol of tradition. Hence our dowries consisted mainly of that,” says Srimani Mathukumilli, a jewellery and interior designer. “They are easy to liquidate during tough times. Those who enjoy buying jewellery will buy it at any price because they’ll hope it keeps going up. I don’t think prices will go down. When the way is only up, there’s no point in waiting,” adds Srimani.
Behind the glitter
Individuals looking to safeguard their wealth are turning to reliable assets such as gold amid worries about rising prices and economic uncertainty.
Central Bank Decisions: The choices made by central banks regarding interest rates and monetary strategies have influenced gold prices as well.
Investor Interest: Robust interest from investors, especially in Asian markets, has contributed to the rise in gold prices.
( Source : Deccan Chronicle )
Next Story