Gold prices in India surged to an all-time high on Monday, with 10 grams of 24K gold reaching ₹87,210, while 1 gram was priced at ₹8,721. The steady rise in prices reflects increasing investor interest in the precious metal as global economic uncertainty fuels demand for safe-haven assets.
Since the beginning of February, gold has been on an upward trajectory. On February 1, 22K gold was priced at ₹7,760 per gram, while 24K gold stood at ₹8,464 per gram. Over the course of ten days, prices rose to ₹7,995 and ₹8,721, respectively, marking a 3.03% increase in 22K gold and a 3.04% rise in 24K gold. The lowest prices recorded this month were on February 3, when 22K gold stood at ₹7,720 per gram and 24K gold at ₹8,420 per gram.
The recent rally in gold prices can be attributed to several factors, including global economic instability, trade tensions, and inflationary concerns. Investors worldwide have been shifting towards gold as a hedge against market volatility and currency fluctuations. Central banks, particularly in China and India, have also played a key role in supporting demand. The weakening of the Indian rupee has further contributed to the rise in domestic gold prices, making imports more expensive.
With ongoing geopolitical risks and strong investor interest, analysts anticipate that gold prices may continue their upward momentum in the coming months. Market participants are closely watching central bank policies, inflation trends, and global economic conditions for further signals on price movements.
According to the World Gold Council, central banks reported a net sale of 3 tonnes (t) of gold in December, as per data from the International Monetary Fund (IMF) and other sources. Kazakhstan emerged as the largest seller, offloading 11t of gold, while China led the buying spree with 10t of purchases. Other notable buyers included the Czech National Bank and the Bank of Ghana, which added 1t each to their reserves.
For the year 2024, Poland has emerged as the largest net buyer, increasing its reserves by 90t, followed by Turkey with 75t and India with 73t. However, overall gold transactions in 2024 have been lower compared to the same period in 2023, indicating a cautious but sustained interest in gold among global central banks.
(Inputs from ANI)
