Gold Prices Soar as Global Uncertainty Drives Investors to Safe Havens
Gold prices in India have surged once again, driven by rising international uncertainties and a weakening US dollar. On Wednesday, the price of 10 grams of 24-carat gold in Delhi rose sharply by ₹1,910, reaching ₹98,450 — a significant jump from Tuesday’s closing price of ₹96,540.
In the Hyderabad bullion market, gold also traded above ₹98,000 per 10 grams by 7 PM, reflecting a consistent upward trend across key domestic markets.
Silver prices mirrored the rally, increasing by ₹1,660 in a single day to reach ₹99,160 per kilogram, up from ₹97,500 on Tuesday.
In the international spot market, gold was trading around $3,311 per ounce. While prices had dipped below $3,200 in recent weeks after peaking above $3,400, renewed global tensions have reignited investor interest, pushing prices back up.
What’s Fueling the Rally?
Chintan Mehta, CEO of Abans Financial Services, attributed the surge to a weakening US dollar and growing concerns over America’s fiscal health. “The demand for gold is strengthening as the dollar loses ground,” he said, adding that Moody’s recent downgrade of the US credit outlook, citing a rising fiscal deficit, has intensified investor fears about long-term economic stability.
Kainat Chainwala, Associate Vice President at Kotak Securities, highlighted geopolitical tensions as a key factor. “Reports of a possible Israeli strike on Iranian nuclear sites have heightened market anxiety. Investors are increasingly seeking refuge in traditional safe-haven assets like gold,” she explained.
As both economic and geopolitical uncertainties mount, precious metals are once again asserting their role as dependable hedges, attracting both institutional and retail investors globally.
