Gold prices before Diwali:Gold prices remained stable on Tuesday after hitting a record high in the previous session due to rising geopolitical tensions in the Middle East and uncertainties related to the upcoming US presidential election.
On Monday, gold hit an all-time high of $2,740.37 and is up about 32 percent this year. The rally has been driven by global uncertainties and more accommodative monetary policy. Gold remains a favorite investment during periods of lower interest rates and greater uncertainty.
Gold markets are also consolidating ahead of Diwali week, a key season for buying gold and silver jewelery in the country. Signs from industry bodies indicate that domestic retail markets will witness record breaking in terms of festive trade sales.
When will Dhanteras be celebrated in 2024?
Dhanteras, an auspicious festival, marks the beginning of Diwali celebrations. Observed on the 13th lunar day of Krishna Paksha in the month of Ashwin, Dhanteras will fall on Tuesday, October 29, 2024.
The name of the festival comes from the Sanskrit words “Dhan”, meaning wealth, and “Teras”, meaning 13th day. Dhanteras is a day dedicated to welcoming prosperity and has great cultural and spiritual significance throughout the world. India.
According to a recent study conducted by the Confederation of Indian Traders (CAIT) across 70 cities, it was found that traders across the country have made extensive preparations to meet consumer demand and preferences. The festive business is expected to touch Rs 4.25 lakh crore this year. Last year, this figure was around Rs 3.5 lakh crore. In Delhi alone, the festive business is expected to cross Rs 75,000 crore.
Why is uncertainty driving gold prices?
Uncertainty in the economy or financial markets tends to drive up gold prices because it is considered a “safe haven” asset. When investors feel insecure about things like economic instability, inflation, or geopolitical tensions, they often look for safer places to put their money. Historically, gold has been viewed as a store of value that tends to maintain its value over time, especially when banknotes or stocks lose value.
During periods of uncertainty, people worry about the risks of other investments, such as stocks or bonds, which may lose value due to market volatility. Gold, on the other hand, is less affected by these short-term swings, making it more attractive.
Demand for gold increases at these times, which drives up its prices. Investors turn to gold to preserve their wealth as it offers security in unpredictable financial environments.
Should you buy gold now?
Gold prices may continue to rise, according to Citi Research, which upgraded its forecast to $2,800 per ounce for the next three months and $3,000 in 6 to 12 months. The bank cites several factors driving this increase, including the possible weakening of the US labor market and possible interest rate cuts by the Federal Reserve. Both physical demand and investments through exchange-traded funds (ETFs) are also contributing to the rise in prices.
Despite challenges such as weaker demand in China and rising interest rates in the United States, gold has shown resilience. With the possibility of economic uncertainty and changes in monetary policy, gold remains a safe asset for many investors.
Taking these factors into account, buying gold now could be a good decision, especially for those looking for long-term stability or a hedge against inflation. However, market conditions can change, so it is essential to closely monitor trends before making any investment decisions.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.