Gold Price Today: The country’s stock market is fluctuating these days, while gold prices appear to be breaking previous records. On Tuesday, the second day of the trading week, gold prices on the MCX jumped 1.21% to a new record of ₹1,16,850 per ten grams.
Gold futures for December delivery in the global market rose 14% to an all-time high of ₹3,899.15 per ounce. According to the latest report from the National Stock Exchange, gold has appreciated 37% in the past 12 months and 31% so far this year. The Nifty has only increased 3.66% this year. Here are some of the reasons for the rise in gold prices.
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Falling Rupee
The weakening of the Indian currency has made imported gold more expensive. Meanwhile, the wedding season has begun in India. Gold demand surges during festivals like Dussehra, Dhanteras, and Diwali. Jewellers report that demand for heritage and handcrafted jewellery is growing significantly. Despite record prices, gold’s cultural and emotional significance is driving purchases.
Conflict in US Politics
The potential for a US government shutdown has also pushed gold prices to new heights. Reports suggest that President Donald Trump and the House are unable to reach an agreement. Many government services are expected to be disrupted starting Wednesday.
Safe Investment Trend
Meanwhile, the Russia-Ukraine war, the Israeli-Hamas conflict, and US-related trade tensions have destabilised the investment environment. Gold is always considered a safe investment in such circumstances. Investors across the country have been buying gold in large quantities despite the high prices.
It is also considered a symbol of security and stability. At the same time, many people are buying gold less for jewellery and more as an investment. Anyway, efforts have been made to increase this trend across the world, including India.