Gold Price Crosses ₹86,000 per 10 Grams: A New Lifetime High
The gold market has been on a rollercoaster ride lately, and yesterday was no exception. Gold prices in Delhi hit a new lifetime high of ₹86,070 per 10 grams, crossing the psychological barrier of ₹86,000. The price of gold of 99.5% purity gained ₹270 to reach this new milestone.
According to a report by PTI, the price of gold had finished at ₹85,400 per 10 grams on Tuesday. The bullion markets were closed on Wednesday due to the Delhi Assembly elections, which may have contributed to the surge in prices.
The demand for gold has been increasing steadily in recent months, driven by a combination of factors. The ongoing COVID-19 pandemic has led to a rise in investor appetite for safe-haven assets such as gold, which is seen as a hedge against inflation and market volatility. Additionally, the weakness in the rupee against the US dollar has also contributed to the increase in gold prices, as it makes imports more expensive.
The central bank’s decision to maintain its accommodative monetary policy stance has also been a factor in the rise in gold prices. The Reserve Bank of India (RBI) has kept interest rates low to support the economy, which has led to a decline in the value of the rupee and a rise in gold prices.
The gold market is also being driven by tensions between the United States and Iran, which have led to a surge in demand for safe-haven assets. The US-Iran conflict has increased geopolitical risks, leading investors to seek shelter in gold and other safe-haven assets.
The price of gold is also being influenced by the global economic outlook. The ongoing trade tensions between the US and China have led to a decline in global economic growth, which has increased the attractiveness of gold as a safe-haven asset.
What does this mean for investors?
The rise in gold prices is likely to be a welcome development for investors who have been looking to diversify their portfolios. Gold is often seen as a hedge against inflation and market volatility, and its price can increase during times of economic uncertainty.
Investors can consider investing in gold through various channels, such as gold ETFs, gold coins, or gold bars. Gold ETFs are exchange-traded funds that track the price of gold and can be easily bought and sold on stock exchanges. Gold coins and bars are physical investments that can be stored in a safe or a vault.
What’s next for gold prices?
While it’s impossible to predict the future with certainty, analysts are divided on what’s next for gold prices. Some believe that the price of gold may continue to rise in the near term, driven by the ongoing pandemic and global economic uncertainty.
Others believe that the price of gold may decline in the coming months, as the global economy begins to recover and interest rates rise. The RBI’s decision to maintain its accommodative monetary policy stance may also lead to a decline in gold prices, as the value of the rupee improves.
Conclusion
In conclusion, the price of gold has crossed a new lifetime high of ₹86,070 per 10 grams, driven by a combination of factors including the COVID-19 pandemic, global economic uncertainty, and the weakness in the rupee. Investors who have been looking to diversify their portfolios may consider investing in gold, which is often seen as a hedge against inflation and market volatility.
As the global economy continues to evolve, it’s essential to keep a close eye on gold prices and other market trends. Investors who are looking to invest in gold should do their research and consult with a financial advisor before making any investment decisions.
Source:
https://repository.inshorts.com/articles/en/PTI/71b110e0-baa0-4b2e-a5a4-978114b02e1c
