Mumbai: Gold prices hit a record high in March. Gold prices rose to all-time record highs after banking crises in the US and Europe rocked markets around the world.
The banking crisis in the US and Europe led to a fall in stock markets around the world, leading to a record high in gold prices in the Indian market. Dt. On March 20, gold in Delhi’s bullion market was Rs. 1,400 rose to a record high of Rs 60,100 per 10 grams. In the event of financial crisis, people, especially Indians, consider gold as the most preferred option for investment. Gold prices have increased six times in the last 17 years.
Why are gold prices increasing?
According to market experts, the rise in gold prices is due to the banking crisis in the US and other countries, a weak dollar, demand for safe investments and uncertainty in the stock market. Gold, which was trading around the Rs 55,000 level a week ago, crossed the Rs 60,000 per 10 gram mark on the support of gold due to fall in equity markets. In the last 17 years, the price of gold has reached the level of 60 thousand from the figure of 10 thousand. In May 2006, the price of gold per 10 grams was Rs. 10,000 and now it is Rs. 60,000 per 10 grams has been crossed. Overall, in 17 years, gold is worth Rs. 50 has become expensive.
In 17 years, the price of gold rose from Rs. 50 thousand increase (price per 10 grams)
Date Price (per 10 grams)
- 5 May 2006 10,000
- 6 November 2010 20,000
- 1st June 2012 30,000
- 3 January 2020 40,000
- 22 July 2020 50,000
- 20 March 2023 60,000
The price of gold will continue to rise
If experts are to be believed, this rise in gold prices may continue further. The price of gold may touch the level of Rs 62,000 per 10 grams in the coming months. A banking crisis is emerging due to interest rate hikes by the Fed Reserve and other countries’ central banks. Gold prices are seeing a boom due to the fear of recession. After the war between Russia and Ukraine that started last year, the country saw a drop in gold prices. But gold prices have rallied since Diwali and reached an all-time high in March 2023. Central banks increase purchases Global stock markets continue to fluctuate. Due to the weakness in the currency, central banks have increased their purchases of gold. The Reserve Bank of India is also doing the same. Recession clouds are looming over the world. Geopolitical tensions remain in many parts of the world. According to experts, gold has been supported as a safe-haven investment whenever a banking crisis has arisen. Even now the situation is the same. There is a risk of a decline in the entire market due to bank defaults. The banking crisis shook markets around the world. Due to which the price of gold has increased to a record.