Mumbai: Gold and silver prices have reached new record highs in India. On Friday, gold futures for December on the Multi Commodity Exchange (MCX) jumped over Rs 2,000 to hit Rs 1,31,920 per 10 grams. Silver prices also rose by nearly Rs 2,000, reaching Rs 1,69,676 per kg. This rise is not just happening in India—gold is also seeing strong gains globally.
Safe Investment in Uncertain Times
One of the main reasons gold prices are going up is because of global uncertainty. With growing tension between countries like the US and China, and economic worries in America, many investors are choosing gold as a 'safe-haven' investment. When people are unsure about the future, they prefer to invest in gold, which is considered safe and steady.
Weak US Dollar Boosts Gold
Another big reason is the falling US dollar. A weak dollar makes gold cheaper for buyers using other currencies, which increases its demand. This global demand pushes prices even higher. On Friday, the US dollar index fell by 0.20 percent, helping gold to become more attractive for international buyers.
High Demand in India Despite High Prices
Even though gold prices are very high, demand in India is not slowing down. People are still buying gold because they are afraid that prices will rise even more. This 'fear of missing out ' is making many customers buy now instead of waiting. Analysts say people want to make sure they don’t miss a chance to buy before prices go higher.
Hopes of Lower Interest Rates and Central Bank Buying
Experts believe that the US Federal Reserve may cut interest rates again soon. Lower interest rates make gold more attractive compared to other investments like bonds. Also, central banks around the world are buying more gold to protect their reserves, adding to the strong demand.
So far this year, gold prices in India have gone up by more than 65 percent. Analysts say the prices are likely to stay high in the coming weeks as investors continue to look for safety.
