In addition, rising tensions in the Middle East have supported demand for the precious metal.
The price of 24-carat gold rose by ₹1,150 to reach ₹72,770 per 10 grams.
International gold market trends
In international markets, gold prices have recently reached new all-time highs.
On Friday (August 16), spot gold prices hit a record high of $2,509.41 per ounce.
This rally is attributed to expectations of an interest rate cut by the Federal Reserve, coupled with a weakened US dollar.
The outlook for the US economy, with recession fears receding, has improved market sentiment, prompting increased investment in gold.
Traders noted that rising global geopolitical tensions and anticipated interest rate cuts in the United States have prompted investors to increase their gold holdings.
Investment Perspectives and Advice
With inflation rates in July falling below 3% for the first time since 2021, there are growing expectations that the Federal Reserve will cut rates at its September meeting.
Market analysts are predicting a possible 25 basis point rate cut, which has contributed to the weakness of the dollar and provided support to gold prices.
Experts also point out that a sharp drop in bond yields has supported gold prices to record levels.
Given current market conditions, including a weak dollar, expected rate cuts and global uncertainties, investing in gold could be a prudent decision.
The recent price increase reflects both increased demand and favorable economic outlook for the precious metal.
However, as with any investment, it is essential to consider your personal financial goals and consult with a financial advisor before making any major investment decisions.
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