Why Gold Prices are Rising? Should You Buy Gold Now?

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₹58,000 to ₹62,500. It’s close to its 52-week high, reached in May this year, at around ₹53,600 per 10 gm. In a sense, gold is playing the role it has always played: A safe haven asset.

Whenever there is fear and uncertainty in global financial markets, investors have time and again rushed to the perceived safety of gold. We Indians are well aware of this. There has long been a belief in Indian markets that stocks are for good times and gold is for bad times.

But this is the trading view on the gold price. But Indians don’t really trade in gold. We invest in it.

A lot. It’s one of the nation’s favourite long-term investments. Most Indians are long on gold, i.e., we own it in some form or another.

Thus we want to see the gold price go up, the higher the better. It’s a regular topic at dinner table conversations. Before stocks became popular, it was among the few financial topics, along with real estate, that families would discuss among themselves.

So it’s safe to say that the recent rise in the gold price has come as a welcome surprise for everyone who is long on the yellow metal. But why is the price of gold rising? And should you buy gold now? Let’s answer these two questions in this article… Back in April, when gold was on its way up to its 2023 high, we wrote to you about the reasons. The reasons were a little different back then.

You can read that editorial here. The gold price has been subdued since then. The recent rise has changed the sentiment among investors and traders alike.

Here are the 3 reasons why the gold price is rising now… Last year the markets were convinced that inflation was on its way down, i.e. high inflation was transitory. This belief has disappeared.