New Delhi. The price of gold crossed the Rs 80,000 per 10 gram mark (Gold Hits Rs 80 Thousand) on Wednesday, creating a new record. According to industry bodies, interest in investing in gold has increased among investors due to the current market volatility and economic uncertainties. Especially, this surge has been seen due to the weakening of the US dollar and the trade policies of the Donald Trump administration.
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Dollar weakness increased the shine of gold
The dollar index hit a high of 110.17 last week, but has seen declines in five of the six recent trading sessions. Due to weakening of the dollar, investors are leaving dollar based assets and turning to gold. Gold has always been considered a safe investment option in times of economic and political instability.
According to India Bullion and Jewelers Association (IBJA) data, the price of 24 carat gold closed at Rs 80,194 per 10 grams on Wednesday. Whereas on Tuesday it was Rs 79,453. The surge was largely driven by a weak dollar and the “safe haven” appeal of gold.
According to Renisha Chainani, head of research at Mumbai-based Augmont Gold, Trump-era policies such as high tariffs and trade instability are the main reasons for this rise in gold prices. He believes that if global trade improves and tariffs are reduced, gold prices could stabilize by mid-2025.
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What do experts say?
Experts believe that unless the dollar strengthens and there is clarity in trade, the rise in gold prices may continue. However, rising prices may put pressure on consumption in sensitive markets like India.
Is investing in gold the right move?
According to market experts, investing in gold can be a safe option in the current circumstances. If you are planning to invest in the long term, then gold can prove to be a good option at this time.
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