Gold Rate Today: A tremendous rise is being seen in the prices of gold. Gold in India has now reached a record level of around Rs 1.26 lakh per 10 grams, while its price in the international market has crossed $ 4,000 per ounce. So far this year, gold has increased by about 54%. This increase is considered to be the biggest increase since 1979.
Why is gold rising?
There are many reasons behind the rise in gold. Expectations of a possible interest rate cut by the US Federal Reserve (US Fed), a weak dollar, global economic uncertainty and massive gold buying by central banks around the world.
Why is gold continuously increasing?
According to experts, due to increasing geopolitical tensions and economic instability, investors are turning towards safe investment instruments. Government shutdown in America, inflationary pressure and weakness of the dollar have further strengthened gold.
IMF chief Kristalina Georgieva recently said that the global economy is going through a difficult phase. At the same time, central banks of many countries are also continuously increasing the purchase of gold. After the sanctions imposed by Western countries on Russia, many countries have started considering gold as a safe option for their foreign assets.
Ross Maxwell, head of global strategy at VT Markets, says gold’s current rally may remain stable for some time, but the level of $4,000 an ounce could become a psychological barrier.
He said that if the dollar strengthens or interest rates are increased again, a fall of up to 5-10% can be seen in gold. However, he also said that if the US Federal Reserve takes a dovish stance or geopolitical tensions increase, gold prices could go higher.
Can investment be made in gold?
Experts believe that gold can still be invested in, but slowly and thoughtfully. Maxwell says that digital gold accounts and ETFs (Exchange Traded Funds) are better investment options with low costs and easy liquidity. At the same time, experienced investors can invest in futures, options or gold mining stocks, but it is important to maintain discipline.
According to Jashan Arora, Director of Master Trust Group, today gold investment is not limited to just jewelery or coins. Now with modern options like gold mutual funds, e-gold and ETFs, people can make safe investments with less capital. In any investment portfolio, 10-15% should be kept in gold or silver.
Where can gold go next
Goldman Sachs has estimated that gold could reach $4,900 an ounce by the end of next year. The bank says that possible cuts in purchase, retail, demand and interest rates by central banks can take gold prices further higher.