Everyone wants to buy gold in the festive season, but this time your desire may be a bit expensive. Actually, the price of gold is creating a new record every day. Presently, the gold in the Indian bullion market is 38450 rupees per 10 grams. But market experts say that in the coming days, this price can cross the level of 40 thousand rupees per ten grams. If we talk about the year 2019, then the price of gold has seen a rise of more than 20 percent.
Gold Price in 12 days
If we talk about the price of the last 12 days of gold, there has been a rise of over Rs 2750. On 1 August, gold was priced at Rs 35 thousand 710 per 10 grams. After 12 days on Monday, it reached the level of Rs 38 thousand 470. But the question is why there is such a huge increase in the price of gold. Let’s know all about it.
1. Global political crisis is the biggest reason for the rise in the price of gold. Actually, the trade war between America and China is deepening globally. Recently, the US has imposed import duty on Chinese goods. According to America, China is tampering with its currency yuan. This is the reason why the US has called China’s yuan a ‘currency manipulator’. Not only this, US President Donald Trump has also indicated to end talks with China. After these decisions, the world is now waiting for China’s response. In these conditions that are happening between the two countries, investors are adopting the option of gold for safe investment. Prices are rising due to the demand for gold.
2. Apart from this, due to concerns about the global economy, the purchase of gold is going on by most central banks around the world. According to market experts, this trend is expected to continue. Let us know that recently the International Monetary Fund (IMF) has indicated a slowdown in the global economy.
3. The Government of India has increased the import duty on gold by two and a half percent while presenting the general budget in the month of July. After this, the duty on gold has been increased to 12.5 percent. Gold business has declined sharply due to increase in import duty. Let us tell you that India is a big importer of gold. It imports more of its needs.
4. In the last few weeks, the movement of Indian stock market was seen to be slow due to different reasons. According to market experts, due to this slack, investors are insisting on investing in gold by selling shares. Explain that in the general budget, Finance Minister Nirmala Sitharaman had announced a surcharge on foreign investment. Since then, there has been a tremendous decline in the stock market.
5. If a country’s central bank cuts the rate, then the price of gold rises. The Reserve Bank of India has so far cut the rate four times in the last 8 months. In such a situation, the prices of gold have also increased. Apart from this, the cut in the US Fed’s interest rates has also been the reason for the rise in gold.