New Delhi, Feb 10: On Monday, gold prices in India soared to a record high, with 10 grams of 24K gold priced at Rs 87,210 and 1 gram at Rs 8,721.
This continuous surge in gold prices indicates heightened investor interest in the precious metal amid fluctuations in global markets.
Gold prices have consistently risen since the start of February. As of February 1, the rate for 22K gold was Rs 7,760 per gram, with 24K gold at Rs 8,464 per gram.
By February 10, these prices increased to Rs 7,995 and Rs 8,721, representing a +3.03 percent rise for 22K gold and a +3.04 percent increase for 24K gold over a span of 10 days.
The lowest prices noted this month occurred on February 3, with 22K gold at Rs 7,720 per gram and 24K gold at Rs 8,420 per gram.
Several factors are driving gold’s recent upward trend. Global economic uncertainty, driven by trade conflicts and concerns over inflation, has led investors to seek refuge in safe-haven assets. Moreover, the buying trends from central banks, especially in China and India, have bolstered demand.
Additionally, the depreciating Indian rupee has pushed domestic gold prices higher, making imports more costly. Gold continues to be a favored hedge against inflation and stock market instability, appealing to both institutional and retail investors.
With strong demand and ongoing geopolitical risks, analysts forecast that gold prices may continue their upward trajectory in the upcoming months. Investors should keep a close eye on central bank activities, inflationary trends, and global economic conditions for further market indicators.
The World Gold Council notes that while retail and investment demand for gold remains robust, global central banks reported net sales of 3 tonnes (t) in December, as per data from the International Monetary Fund (IMF) and other sources.
In December, Kazakhstan was the largest seller, offloading 11t of gold, while China was the leading buyer with 10t of purchases. Other significant buyers included the Czech National Bank and the Bank of Ghana, each adding 1t to their reserves.
For 2024, Poland has emerged as the top net buyer, acquiring 90t of gold for its reserves, followed by Turkey (75t) and India (73t).
However, both gross purchases and sales in 2024 have declined compared to the same period in 2023, indicating a cautious but steady interest in gold from central banks. (Agencies)
