SPORTS ENTERTAINMENT CELEBRITY TRAVEL WEB STORIES LATEST NEWS

---Advertisement---

 6 Reasons Why Gold Price Rises to ₹80,000: Are Global and Domestic Factors Involved?

By Nabanita

Updated on:

Gold Prices Rose to ₹80,000
---Advertisement---

Gold Price Rises to ₹80,000 Global and Domestic Factors Involved

Here’s an explanation for the hike in gold price can be influenced by a combination of Global & Domestic factors

  • Global Economic Uncertainty: In Indian households, gold preferably seems a haven during the economic crisis. Events like geopolitical tensions, economic downturns, or instability in major economies lead investors towards gold, driving up demand and prices.
  • Inflation Concerns: High inflation depreciates the purchasing power of currencies and makes gold appealing as a means of maintaining value. If inflation rates are high, investors buy more gold and hike the prices.

  • Currency Depreciation: Depreciation of the Rupee against the Dollar can have a significant impact on gold prices in India. This is because gold is internationally traded in dollars, hence a weaker rupee will result in gold becoming more expensive in the domestic market for Indian buyers.
  • Central Bank Policies: Increasing gold reserves in the Central Bank can also drive demand. Lower interest rates reduce the opportunity cost of holding nonyielding assets such as gold, making it more palatable.
  • Supply Chain and Mining Problems: Limited production of gold as well as supply chain disruptions all create a perfect storm of supply and demand to raise prices quickly.
  • Rising Demand: Rising demand in conjunction with the festive season and wedding season in India, and rising demand from countries such as China, may cause gold prices to rise.

Also Read : ISL 2024-25: East Bengal defeats Kerala Blasters 2-1 at home with the stellar performance of Vishnu and Hijazi

Nabanita

Hello Readers, I’m Nabanita, the news editor for Buzztimes. My role involves curating, editing, and publishing high-quality news content. I am committed to ensuring factual accuracy, adhering to the publication's style guide, and maintaining a consistent tone across all articles to deliver impactful stories to our readers.

---Advertisement---

1 thought on “ 6 Reasons Why Gold Price Rises to ₹80,000: Are Global and Domestic Factors Involved?”

Leave a Comment