What is the reason behind it and what will be the price in future?
gold price Today : Gold prices are in the headlines these days. Gold has touched its highest level 50 times in the last 12 months, which is considered to be the biggest period of price rise in the last 12 years. This is the third fastest price rise in history. According to experts, this situation is reminiscent of the 1970s, when inflation, economic recession and unemployment sent gold prices skyrocketing for several months. At that time, continuous increase was seen for four years. But this time with a rise of 39% in the last year and 16% this year, gold seems to be getting expensive for the third consecutive year.
Today (31 March 2025), the price of gold in the bullion market of the national capital Delhi has reached a record level of Rs 92,150 per 10 grams, registering an increase of Rs 1100 on Friday. Along with this, silver is also not far behind. The price of silver has risen by Rs 1300 to a new high of Rs 1,03,000 per kg. Let us know why the prices of gold and silver are rising and how far their prices can go in the future.
Major reasons for the rise in gold prices
Many global and local reasons are responsible for this rise in gold prices. Here’s a look at some of the major reasons:
Concerns of global trade war: The possibility of US President Donald Trump imposing new tariffs has increased the risk of trade war around the world. This has created an atmosphere of uncertainty in the stock market, due to which investors are looking at gold as a safe investment.
Economic instability: Gold has always been the first choice of investors in times of economic uncertainty. When interest rates are low and the risk in the stock market increases, the demand for gold naturally increases.
Inflation and geopolitical tensions: Global inflation (around 2.8%) and geopolitical tensions, such as Israel’s attack on Gaza, have attracted investors to gold.
Weak US Dollar and Central Bank Buying: Despite the strong US Dollar (103.9952 index), Central Banks are buying gold to increase their reserves, which is pushing the prices higher.
Festival and wedding demand: In countries like India, the wedding and festival season further increases the demand for gold. The weakness of the rupee (85.79 INR/USD) and 6% import duty have also affected the prices.
How much can gold prices rise?
Experts believe that gold prices can see further rise. According to a report by ICICI Bank Global Markets:
The price of gold in India can reach Rs 96,000 per 10 grams by the second quarter of 2025.
Globally, the price of gold can remain between $3200 and $3400 per ounce by December 2025.
This estimate is based on the global economic situation, inflation and increasing interest of investors. If geopolitical tensions escalate or there is a major fall in the stock market, gold prices may go even higher.
Silver’s shine also increased
Along with gold, silver is also becoming attractive for investors. On Friday, the price of silver increased by Rs 1300, after which it reached Rs 1,03,000 per kg. It was Rs 1,01,700 per kg on Thursday. The demand for silver is increasing not only for jewellery but also due to industrial use.
Is it the right time to buy gold?
Gold prices are at their highest level, but experts say it can still be a good option for investment. If you want to invest for the long term, gold is a strong means to protect against economic instability. However, experts advise that you must consult your financial advisor before buying.
Historical performance of gold
Gold has also outperformed the stock market in the last few years. For example:
Gold worth Rs 1 lakh 25 years ago is worth Rs 19 lakh today.
A Nifty investment of Rs 1 lakh is worth Rs 16 lakh today.
These statistics show that gold can give great returns in the long term, especially in times of uncertainty.
Conclusion
This rise in gold and silver prices is a result of global and local factors. Trade wars, economic instability, and increasing demand have made gold a favorite choice of investors. If you are planning to invest in gold, it is important to understand that prices may rise further. But do not forget to get complete information and advice before making any investment.
Disclaimer: This article is written for information purposes only. Do not take it as investment advice. Investing in stock market and gold can be risky, so consult your financial advisor.
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