Gold Prices Surge to ₹72,120 per 10 Grams Amid Global Economic Uncertainty

The recent rally in gold prices has caught the attention of investors worldwide, with the precious metal reaching ₹72,120 per 10 grams in the domestic market. This surge comes amidst a backdrop of heightened geopolitical tensions and concerns over inflation, driving investors to seek refuge in safe-haven assets like gold.

The rally in gold prices can be attributed to several factors, including persistently higher consumer prices for the third consecutive month, challenging the Federal Reserve’s stance on inflation. Additionally, escalating geopolitical tensions have further fueled demand for gold, both domestically and globally.

Internationally, spot gold prices climbed to $2,345.56 per ounce, reflecting a 0.6% increase, while US gold futures also rose by 0.6% to $2,362.80. These gains underscore the widespread appeal of gold as a hedge against inflation and economic uncertainty.

Market analysts anticipate a continuation of the upward momentum in gold prices, driven by factors such as central bank purchases, safe-haven inflows, and momentum-following fund demand. Economic indicators, including robust US jobs reports, have raised doubts about the feasibility of rate cuts in the near future, further supporting the case for investing in gold.

Looking ahead, experts suggest that gold prices may continue to rise, with projections of reaching ₹75,000 per 10 grams by the end of the year. Given the immediate protection against inflation and the role of gold in diversifying investment portfolios, investors are advised to consider allocating a portion of their portfolios to gold.

While waiting for a price drop may not be advisable, investors should carefully assess their portfolios and consider the long-term benefits of holding gold amidst volatile geopolitical and economic conditions. By incorporating gold into their investment strategy, investors can effectively hedge against market uncertainties and maintain portfolio diversification.