Gold prices in India experienced a substantial increase on Friday, continuing a global upward trend as investors seek refuge from mounting geopolitical tensions and persistent macroeconomic uncertainties. The renewed risk aversion has led market participants to pour capital into traditional safe-haven assets like gold and silver, driving prices to new highs.
According to market data, the price of 24-karat gold rose by 840 rupees per 10 grams compared to the previous trading day, while 22-karat gold advanced by 770 rupees per 10 grams. This surge propelled domestic gold prices to record levels, closely aligned with gains in the international spot gold market. Globally, spot gold prices have been buoyed by increasing demand for safe-haven assets amid concerns over geopolitical instability and economic headwinds.
The sharp rise in gold prices is largely attributed to escalating tensions between Israel and Iran, which have reignited fears of broader regional conflict. In addition, persistent inflationary pressures worldwide and speculation about potential interest rate policy adjustments by major central banks are intensifying market volatility. Fluctuations in the U.S. dollar and bond yields have further supported gold’s appeal as a hedge against currency depreciation and economic uncertainty.
Market analysts point out that the current geopolitical climate, combined with financial market turbulence, is likely to sustain robust demand for gold over the near term. Central banks around the world are reportedly increasing their gold reserves as a strategic safeguard against future shocks, while cautious individual investors are also boosting their holdings to preserve wealth.
“Given the ongoing geopolitical risks and inflation concerns, gold remains one of the most reliable assets for portfolio diversification and risk management,” said a senior market analyst. “However, investors should be mindful of potential short-term volatility as global economic conditions continue to evolve.”
As gold prices continue to break new records, experts advise retail investors and market participants to stay vigilant and well-informed. While gold is traditionally viewed as a safe store of value during times of crisis, its prices can experience significant fluctuations in the short term, influenced by shifts in geopolitical developments, monetary policies, and currency markets.
Investors are encouraged to monitor the evolving geopolitical landscape closely, especially developments in the Middle East, as well as economic indicators such as inflation rates and central bank decisions. Maintaining a balanced and diversified investment portfolio remains crucial to managing risks amid ongoing uncertainty.
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