Chandigarh (National Times): Gold is glittering like never before, Rs 1 lakh per 10 grams, to be exact. That’s a new record, and it’s left many people, especially middle-class families, a bit stunned.
Buying gold has long been a trusted savings strategy, especially among Indian homemakers.
Even Uday Kotak chimed in on social media, saying, “The Indian housewife is the smartest fund manager in the world.” But this price hike has made everyone, from casual buyers to serious investors, pause and ask: Why is this happening? And will prices cool down?
What’s Behind the Gold Rush?
- Dollar is Struggling: A weaker US dollar makes gold more appealing. Add to that global uncertainty, like the ongoing tensions between the US and China, and gold becomes the go-to safety net.
- Central Banks Are Stocking Up: In just this year, central banks (especially in Asia) bought over 1,000 tonnes of gold, one of the biggest purchases ever recorded. They’re trying to reduce dependence on the dollar.
- Stagflation Worries: The US economy is facing a tough combo, slow growth and rising inflation. This mix, known as stagflation, usually pushes more people toward gold.
- Fear of Recession: Big firms like Goldman Sachs are now saying there’s a 45% chance of a US recession. As trust in the dollar drops, interest in gold keeps going up.
So, Will Gold Prices Fall?
Experts say not anytime soon, unless inflation cools and global tensions ease. Until then, expect gold to stay pricey.
