Its festive time. What is your prediction? Will gold rate drop or increase in the coming days?
Going by the current global trends and news coming in everyday of new policies from USA, it is likely that gold rates will rally up. Market uncertainties tend to do that.
The truth is, gold has always held value, whether as jewellery or as an investment. Supply and demand mainly shape its price. When demand rises, prices climb. When demand falls, prices decrease.
People have always considered gold a safe investment, especially during economic crises. Unlike stocks and bonds, market volatility doesn’t directly impact it. That’s why investors often move to gold when the stock market feels unstable.
In India, I’ve noticed a clear upward trend in gold rates, and several factors are causing this:
- Rising Demand: India is one of the largest consumers of gold, and demand keeps increasing. It can be for investment or cultural reasons.
- Rupee Volatility: The Indian rupee has seen unstable movements. Since gold is priced in dollars, a weaker rupee means paying more in rupees for the same amount of gold.
Considering all this, I don’t see gold prices dropping in the coming days. Instead, the trend leans towards gradual increases. Of course, short-term fluctuations will always exist. However, in my view, gold remains a strong long-term asset.