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Gold prices have been consistently rising in India on the back of changing global dynamics. Let’s take a look at some of the factors behind the rise in gold prices.
Gold is a safe-haven asset, so its prices increase when other investments become risky due to market fluctuations and geopolitical tensions.
Experts believe that 25% US tariffs on Canadian and Mexican products and a 10% levy on Chinese goods could lead to high inflation, which would drive investors toward gold.
Indian stock markets have seen a huge sell-off in the past few months due to weak quarterly earnings of many major companies and sharp disinvestment by foreign traders (FII).
US President Trump has been repeatedly calling for rate cuts, but the US central bank is expected to keep the rates steady for now.
Union Budget 2025 announced a customs duty cut on jewellery and jewellery parts from 25% to 20% can boost the domestic demand for gold.
Rising fears of a trade war between the US and China, and geopolitical tensions in the Middle East create uncertainty that fuels the demand for safe-haven assets.
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