Reported By Vinod Jagdale
In a substantial development, gold price touched the new all-time high on Friday in the Zaveri Bazaar of Mumbai. The price of 10 grams of 24-carat gold has breached Rs 1 lakh per 10 grams mark and is now standing at Rs 1,01,000. This is reportedly the biggest jump in gold prices in the Indian market, so far.
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According to the market experts, the surge is driven by the rise in gold prices in the international market. Moreover, the potential interest rate cuts in the US and Europe, weakness of the dollar, and ongoing geopolitical tensions in the Middle East has increased the demand of gold among investors as a safe investment.
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While this news may bring relief for the investors, gold has become more expensive for retail customers. In the wedding season, this surge can further put pressure on the middle class. Gold traders are saying that a decline in demand has been reported for the new jewellery, with people instead opting to sell their existing gold.
Will The Gold Price Surge More?
According to the market experts, if international instability persists and demand remains on the higher level, gold prices may touch even higher mark in the upcoming days. However, several other experts believe that now prices may soften a bit due to the trend of profit booking among the investors.
Meanwhile, the historic surge in the gold prices has reinforced its reputation as a safe-haven asset during economic uncertainty, leaving investors curious about its future price direction. It will be interesting to watch which way the price of the precious metal moves in the future.
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