Neha Nagar Instagram – Will gold prices cross 1 lakh rupees?
Gold has long been considered a safe-haven asset, and recent trends suggest it could be on the rise, because of these 3 possible reasons :
1. Increased Central Bank Buying:
Over the past year, both China and India’s central banks have been significantly increasing their gold reserves. China alone has witnessed a 16% rise in its gold reserves in the last year. Meanwhile, our own Reserve Bank of India (RBI) has been proactive, purchasing as much gold in the first three months of this year as it did in the entire previous year.
2. Geopolitical Tensions:
Recent escalations in tensions between Israel and Iran have prompted investors to seek refuge in gold. Historically, during times of war or recession, investors tend to divest from the stock market and flock towards safe-haven assets like gold.
3. Diversification from the Dollar:
Major global players such as Russia, China, and India may adopt the Dollar 1 strategy. This entails reducing dependency on the US dollar by conducting a significant portion of their international trade in gold rather than dollars. This move could potentially decrease their vulnerability to fluctuations in the US dollar.
What do you think? Let me know in the comments.
[ Goldprices Nehanagar finance Investing dollar ] | Posted on 04/May/2024 17:49:03
