Gold prices have skyrocketed to ₹1 lakh per 10 grams, driven by multiple factors. Here’s what fueled this extraordinary surge:
1. Geopolitical Tensions
Ongoing uncertainties, including the US-China trade war and Middle Eastern conflicts, have increased global risk, pushing investors towards gold as a safe-haven asset.
2. Weakening US Dollar
A declining dollar has made gold cheaper and more attractive for international buyers, boosting demand and driving up prices.
3. Central Banks’ Gold Reserves
Global central banks are adding gold to their reserves to mitigate currency volatility and strengthen financial stability.
4. Inflation and Stagflation Concerns
With inflation climbing and fears of stagflation rising, investors are favoring gold as it retains value during economic turbulence.
5. Seasonal Festive Demand in India
The upcoming Akshaya Tritiya has spurred increased domestic demand, further contributing to the upward momentum.
Gold’s rally has taken it to an all-time high on the Multi Commodity Exchange, and analysts foresee further gains despite possible price fluctuations. Its enduring appeal as a hedge against economic uncertainty shines bright.