Gold became expensive in a year.
In the last few years, there has been a tremendous rise in gold prices. Gold prices have increased by about 50% in just one year, which has also left behind the Nifty Index and other major indices. This fast has come due to many reasons. Such as heavy purchases of central banks, increasing geopolitical stress, business uncertainties, weakened dollar index, fears of economic recession and strong investment flow in ETF.
Experts believe that the demand for safe investment between the Russia-Ukraine War remains continuously. Recently, US President Trump’s statement that Ukraine can get back the lost area is likely to be stressed and increased. In addition, the government shutdown in the US after seven years may delay the announcement of essential economic figures such as ISM and Non-Afarm Payrolls, which will increase uncertainty and support gold.
Effect of India and Turkish tension
Experts believe that after ‘Operation Sindoor’, the growing tension between India and Türkiye is also Gold prices There may be more bounce in. India is now strengthening its relations with Turkish anti-Turkish countries Greece, Cyprus and Israel, so that the coalition of Pakistan-Turki-Azerbaijan can be fought. Recently, India has also conducted naval exercises with Greece and Cyprus. If the stress increases, then due to the strategic condition of these areas, the possibility of global economic recession may increase.
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Can gold go up to ₹ 1.25 lakh until Diwali?
According to Reliance Securities, the demand for safe investment in gold will definitely increase due to the stress of India-Turkish, but if there is no global factors on a large scale, gold till Diwali is difficult to reach ₹ 1.25 lakh per 10 grams. He said that domestic gold prices depend on many things. International gold rates, dollars-dollar exchange rates and import duty. If the rupee is weak and the trend of avoiding risk in global markets increases, then gold can be more expensive, but until India-Turkish tension does not reach a very serious level, the boom of gold will depend on the US Federal Reserve policies, ETF investment and the festive demand of India. Policy changes such as reduction or restrictions in import duty on gold can also affect prices. The target of ₹ 1.25 lakh is slightly higher, while prices ranging from ₹ 1.19 lakh to ₹ 1.22 lakh per 10 grams are more realistic.