New Delhi [India], April 22 (ANI): Gold prices in India touched a historic milestone on Tuesday, crossing Rs 1 lakh per 10 grams. Experts believe that while this sharp rally may lead to a temporary correction, any fall from this level is likely to be limited to a maximum of 10 per cent.
Gold has traditionally been seen as a hedge against inflation and global economic uncertainty. With the current global economic situation marked by instability, investors are increasingly turning to gold as a safe and reliable asset. This trend has only grown stronger as gold continues to break records.
Rajesh Rokde, Chairman of the Gem and Jewellery Council of India (GJC), told ANI that such corrections in gold prices are natural after a steep rally and tend to be short-lived.
“Whenever there’s a sharp rally in gold, a 10 per cent correction is normal. It’s usually a temporary pullback and doesn’t last long. Overall, Goldman Sachs also expects gold to touch USD 4,000 per ounce. This rally is being driven by two key factors, de-dollarisation and increased gold purchases by central banks amid global economic uncertainty caused by tariffs,” he told ANI.
Rokde also pointed to the ongoing trade war between China and the United States as one of the main reasons behind the surge in gold prices. He noted that even China’s insurance sector is investing heavily in gold to protect against economic risks.
“In every rally, we generally see only a 10 per cent correction,” Rokde explained.
“For instance, when gold was at USD 1,000 per ounce, the correction would typically be around USD 100. Now, with gold trading around USD 3,400 per ounce, we can expect any correction to be in the range of USD 340, give or take,” he added.
The Trump administration’s tariff policies have also played a role in boosting demand for gold. These measures have raised concerns about a possible recession, pushing more investors towards gold as a safe-haven asset.
Supporting this sentiment, Uday Kotak, Founder and Director of Kotak Mahindra Bank praised gold’s performance over time, especially highlighting how Indian households have long recognized its value.
“The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world. Governments, central banks, economists, who support pump priming, high deficit funding, may need to take a leaf from India, a net importer of store of value forever!” he said in a social media post.
While short-term fluctuations may occur, the broader outlook for gold remains strong, with analysts expecting continued demand amid global economic uncertainty. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
