Gold prices are once again reaching new heights. In the domestic market, 10 grams of gold has surpassed ₹1.19 lakh, marking one of the highest levels recorded to date. Over the past 24 hours, its price has increased by ₹2,105. Global uncertainties, a weaker dollar, and growing investor interest have contributed to this upward trend.
According to experts, the rise in gold prices in international markets continues due to signs of economic recession in the United States and Europe, geopolitical tensions, and consistent gold purchases by central banks. This has had a direct impact on the Indian market.
Key factors driving the increase in gold prices:
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Decline in the Dollar Index: When the dollar weakens, investors view gold as a safe investment option.
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Geopolitical Tensions: Tensions in the Middle East and Europe have increased the demand for gold as a ‘safe haven’.
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Central Bank Purchases: Central banks in several countries are increasing the share of gold in their reserves.
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Festive Demand: A surge in domestic gold demand is also being observed in India ahead of the Navratri and Diwali season.
Meanwhile, silver prices have also risen, becoming more expensive by up to ₹1,500 per kilogram. Bullion market experts believe that if the current trend continues, gold prices could reach ₹1.22 lakh per 10 grams by Diwali.
This is a time for investors to proceed with caution, as even minor fluctuations can occur suddenly during such a bullish phase.
Gold appears to be returning to its traditional role as a ‘safe investment’. The continuously rising prices indicate that its shine is unlikely to fade in the coming months.
