With the present economic scenario, a kind of abrupt turn was observed within the gold market. Just all of a sudden, prices increased by Rs. 1000, giving rise to a new record. Mixed reactions were seen among buyers and investors because of this price increase. According to the announcement, the current price of 24-carat gold in the domestic market has shot sky high, up to a staggering Rs. 1,07,070 for 10 gm on Tuesday.
What Has Driven Gold Price Gains?
"Increase in gold demand globally, price changes in dollars, and geopolitical uncertainty became the most crucial arguments in the hike in prices," analysts say. Demand for gold was tremendous as central banks were buying gold actively in countries such as the USA, China, and Europe. But on the other hand, the gold price increased internationally by 20 dollars per ounce, having an effect on the domestic market.
Consideration for investors?
Gold has been touted as a 'safe investment.' However, true to its name, people sometimes flock toward buying gold whenever there is instability in the market and inflation rises; so perhaps, it is the right time to buy gold for many. This really is long-term action, though, and it would probably make more sense to examine the market before such a decision is made.
Effects on the Common Man
This increased price of gold gives a real hard hit on any common person and middle-class families, especially with the wedding season around the corner. For many, it would mean cutting back and settling for low-carat gold or other jewelry. According to the gold traders, jewelry demand still remains as strong as ever despite the price hike.
The tendency of prices concerning gold to increase shall depend in the coming few days on the parameters of the current global economic outlook and demand in the market. However, this is an important moment for those intending to buy gold on the spur of the moment. One has to keep an eye on the fluctuations and behavior of the market on such information.
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