Gold gave good returns to investors in the last one year. This week, gold price in India reached Rs 1,12,750 for 10 grams. In one year, Nifty50 went up only 1 percent, but gold went up 53 percent. Now the question is – is it the right time to invest in gold? Let us see how it can be profitable to invest in gold now.
What Brokerage Houses Are Saying
According to a report by Business Standard, Axis Mutual Fund said that many retail investors started booking profits when gold reached this level. The note said investors are selling their old gold at the current price, waiting for a fall. But the right approach depends on how they hold gold. Gold jewelry is not used for trading. Those who invested in gold ETFs, sovereign gold bonds, or futures can take some profits at this time.
Why Gold Prices Are Rising
Gold prices are rising because of world events and economic reasons. When Trump ran for the US elections, he promised to stop the Russia-Ukraine war, but it did not happen. At the same time, Israel carried out airstrikes on Qatar, which caused deaths. These events made investors turn to gold.
Also, due to Trump’s tariffs, spending in America is rising, which is increasing inflation and unemployment. The SCO meeting has also shown a new world order in front of America. For these reasons, gold prices are rising again.
Currently, gold in the international market is $3,600 per ounce. Goldman Sachs reports that if prices keep rising, gold could reach $4,500 per ounce by 2026. In India, the price may go around Rs 1.45 lakh. Experts say gold could reach Rs 1.25 lakh by Diwali this year. Last year, on Dhanteras, gold price was Rs 78,846 per 10 grams.