Gold prices near record high—should you buy now?
Gold prices are nearing their all-time high, with rates currently ₹2,800 away from the record peak of ₹99,358 per 10 grams. The surge follows economic uncertainty and geopolitical tensions, particularly the India-Pakistan conflict, which has driven investors toward gold as a safe-haven asset. Last week, MCX gold rates jumped over 4%, closing at ₹96,535 per 10 grams, while spot gold prices rose 2.65%. The Indian rupee’s depreciation of over 1% further amplified the rally in domestic gold prices.
Key Factors Driving Gold Prices
Experts attribute the price surge to:
- US Federal Reserve’s decision to maintain interest rates at 4.5%, reflecting ongoing economic uncertainties.
- Bank of England’s rate cut of 25 basis points to 4.25%, supporting gold prices.
- US tariffs on foreign-produced movies and pharmaceuticals, increasing market volatility.
- India-Pakistan tensions, boosting domestic demand for gold.
Analysts suggest that gold prices may remain volatile, with key support levels at ₹94,500 and ₹92,000 per 10 grams, while resistance is seen at ₹97,500 per 10 grams.
