5 Reasons Why Gold Price Breached Rs 80,000 – Trak.in
Gold prices in India recently crossed the Rs 80,000 mark per 10 grams, an all-time high fueled by multiple factors. As economic uncertainty looms, precious metals like gold have emerged as a safe investment choice, attracting both retail and industrial buyers. Here’s a look at the top reasons behind this price surge.
1. Geopolitical Tensions and Global Unrest
Rising conflicts in the Middle East and anticipation of potential escalations have driven demand for gold as a safe-haven asset. Investors tend to turn to gold amid uncertainties, and this trend has pushed gold prices higher. These factors create volatility in markets, making gold a preferred choice for security against unpredictable geopolitical risks.
2. US Presidential Election Uncertainty
With the U.S. presidential election just around the corner, concerns over the outcome have unsettled global markets. This election season’s heightened volatility, especially around the prospect of Kamala Harris’ leadership, has made gold an appealing hedge against possible market fluctuations. As a result, gold has seen steady demand in both the U.S. and international markets, including India.
3. Industrial Demand for Silver and Gold
The increasing use of precious metals in industrial applications, particularly in electronics and renewable energy sectors, has further spiked demand. Silver prices, for instance, have seen significant increases due to its role in photovoltaic (solar panel) applications, which also has indirectly driven up gold as a parallel precious asset. This industrial interest, combined with traditional investment demand, has contributed to the rising prices.
4. The De-Dollarization Effort by BRICS Nations
BRICS countries, aiming to reduce their reliance on the U.S. dollar, have increased their reserves of gold. This shift has increased gold’s appeal as a stable asset that can support alternative financial systems. As more nations join the de-dollarization movement, the demand for gold is anticipated to continue its upward trend.
5. Pre-Diwali Surge in Demand
Gold is deeply ingrained in Indian culture, especially around festivals like Diwali, a peak season for gold purchases. With Diwali approaching on October 31, 2024, demand for gold has surged in anticipation of festive shopping. Retail buyers are making purchases both for investment and traditional purposes, adding further upward momentum to prices.
Conclusion
The recent breach of Rs 80,000 for gold in India is a result of compounded global events, rising industrial demand, and the cultural affinity for gold. With economic and political factors at play, the demand for this precious metal is set to continue, making it a compelling investment for those seeking stability in uncertain times.
Source: 1, 2, 3
