New Delhi: Gold prices have surged 42 percent globally since January 2024, reaching $2,900 per ounce, while Indian prices climbed from ₹63,000 to ₹88,000 per 10g. This surge is driven by geopolitical uncertainties, inflation fears and a shift from traditional investments to gold-backed assets.
Central banks, especially China (316T), RBI (72T), and Turkey (198T), have aggressively increased gold reserves, aiming to reduce dependency on the US dollar. In India, high-net-worth investors are shifting funds from mutual funds to gold ETFs (exchange-traded funds), with ₹37.5 billion ($435 million) moved into gold-based assets in January 2024 alone.
Gold is seen as a safe-haven asset, rising during economic turmoil and inflation. With Trump’s return and global trade tensions, markets are becoming volatile, further fuelling demand. Central banks are also bringing back their gold reserves from Western vaults, fearing economic sanctions or asset seizures.
Analysts predict gold prices may continue rising, as central banks and investors prioritise wealth security over market volatility. The ongoing global financial uncertainty, inflation and weakening dollar make gold the preferred asset for long-term security. If instability continues, gold may surpass new all-time highs soon.
ThePrint Editor-in-Chief Shekhar Gupta explores this and more in Episode 1612 of #CutTheClutter.
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