Gold Price Soars to New High, Know the Reason

New Delhi: The Multi Commodity Exchange (MCX) gold price in India soared to a record high of Rs 69,487 per 10 gm in opening trade on Monday and was hovering at Rs 68,828 at 11.26 am.

This rise in gold price is due to its new lifetime high price of  $2,263.53 per ounce in the international market on Monday. This rise in gold price is because of the geopolitical tension increase in Central Asia. The US Fed has also signalled a rate cut. Gold is a key asset class for central banking and safe-haven investment avenue.

Expectations of low interest rates make financial instruments less attractive for investors compared to gold leading to increased purchases of the yellow and the rise in prices.

Rising geopolitical risks and buying by central banks, led by China have also fuelled gold prices.

With global uncertainties like the continuation of the Russia-Ukraine war, the Israel-Hamas conflict, and tension in the Red Sea region, gold is seen as an attractive asset by investors.

As it is the marriage season, the demand for gold is high in India.

During the last six months, gold prices have increased steadily.