new Delhi, You must have seen a steady rise in gold prices in the last week. Gold has reached Rs 40,000 per 10 grams in a week. The price of gold has not increased so far. But now she is not taking the name of falling down. Experts say that in the coming time, the price of gold may increase further. We tell you why prices are increasing…
1. Geopolitical Stress
Gold price is getting support from the conflict between Iran and America due to deepening military tension created in Gulf region. Tensions between Iran and the United States have increased after the death of Iranian Major General Qasim Sulemani in the US Airstrike. US President Donald Trump has warned Iran that if it dares to avenge Suleimani's death, the consequences will be worse, because the US can target 52 of its bases. On the other hand, North Korea has warned to resume molecular testing, due to which the geopolitical tension is already there.
2. Global economic sluggishness
During the last 18 months, due to the confrontation between the US and China on business issues, the pace of development of the global economy has slowed down and the atmosphere of uncertainty is not over yet. This is the reason that in the last year 2019, gold has increased very much.
3. Reduction in interest rates
Globally, gold prices were supported by the reduction in interest rates by the central banks and the weakness in the dollar. The weakness in the dollar is still ending.
4. Good Returns
Last year, gold in India received 23.77 per cent, while in the international market, investors in the global market have returned 18.28 per cent, so there is a tendency for investors to invest in yellow metal.
5. Fast Trend
If you look at the history of the trend of gold boom, whenever expensive metal rises, this trend lasts for three to four years.
6. Weakness in rupee
Talking about the Indian market, weakness in the domestic currency rupee is also a reason why gold can get support. At the same time, whenever gold rises in the country, shopping increases and on the contrary, the trend of shopping remains weak during the fall in prices.
7. Safe and better means of investment
In the real estate sector due to weak investment and uncertainty about equity investment, gold remains the only safe and inexpensive means of investment for investors.