New Delhi: Amid increased geopolitical tensions, with the war in East Europe and the Middle East, gold prices touched an all-time high of Rs.76,899 on Thursday. More and more investors are choosing gold as a secure investment. The festive and wedding season has also contributed to the demand for gold. Festivals like Diwali and Dhanteras are considered auspicious for buying gold which has conventionally been a part of weddings in India. However, the precious metal is also considered a secure investment, especially when markets are volatile. Currently, gold prices in major cities like Mumbai and Delhi are trending around Rs.7,150 per gram for 22k gold.
Globally, gold is trading close to its all-time highs, buoyed by uncertainty surrounding the US elections and the expectation of interest rate cuts from major central banks.
Analysts note that uncertainties around a potential Trump presidency could heighten trade tensions and increase the US budget deficit, further driving investors toward gold, CNBC reported.
Shedding light on the key drivers behind this historic rise in gold prices, Director of Kedia Advisory, Ajay Kedia told ANI, “MCX Gold reached an all-time high of Rs 76,899 as major central banks’ dovish outlooks and slightly lower bond yields boosted demand for non-interest-bearing bullion.”
“The Federal Reserve is expected to cut rates in its two remaining decisions this year, with a 25-basis-point cut in November looking increasingly likely,” he added.
“Gold prices were also boosted by uncertainty surrounding the US presidential election and renewed Middle Eastern tensions, following Israel’s intensified air strikes on Lebanon on Wednesday,” he added.