Rs 80,000 gold goes where it has never gone before
Gold prices crossed the ₹80,000/10 gm mark for the first time Wednesday, data from the top industry body showed, underscoring renewed safe-haven demand for the metal from investors riled by anticipated uncertainty in the securities markets in the immediate aftermath of a seemingly disruptive Donald Trump presidency. A dollar retreat globally has also helped prices head north.
The metal closed at ₹80,194 per 10 gms for 24-carat in the physical market, data from the India Bullion and Jewellers Association (IBJA) showed. A weakening dollar and bullion's enduring safe-haven allure with investors have helped prices harden, said IBJA and the bullion trade, although prospects of retail jewellery purchases through the remainder of the wedding season have become rather circumspect after the price increases.
Gold prices climbed in lockstep with the retreat in the dollar index. After hitting a two-year-plus high of 110.17 last week, largely in anticipation of trade tariffs, the dollar index has shown signs of fatigue and has fallen in five of the past six sessions.
Seeing this trend, investors globally have shifted away from the dollar and parked funds in gold, pushing up its prices. Bullion is considered a safe investment during economic and geopolitical uncertainties.
Renisha Chainani, head of research at Mumbai-based Augmont Gold, said due to the Trump-era policies, such as increased tariffs and trade uncertainties, gold prices have surged as a safe-haven asset. Price stability is likely to depend on geopolitical
