Gold price jumps over ₹8350 in six weeks. Opportunity to buy as US unemployment rate hit its lowest since May 2024
Gold rate today: Five factors explain the recent increase in gold price outlook according to experts including economic uncertainty and trade war tensions which have been intensified by geopolitical issues as well as rate cuts from global central banks and a declining Indian Rupee.
Gold price jumps over ₹8350 in six weeks. Opportunity to buy as US unemployment rate hit its lowest since May 2024
The precious yellow metal functions as a safe investment option for a duration of six weeks after the economic uncertainty arose from US President Donald Trump's tariff announcements and the depreciation of the Indian National Rupee (INR). MCX gold rate peaked at ₹85,279 per 10 gm before settling at ₹84,900 per 10 gm. During the week Gold price increased by more than ₹2,500 per 10 gm and over six weeks they grew by ₹8,356 per 10 gm which represents a rise of about 10.90 per cent. Over six continuous weeks, gold prices stayed stable across global markets before attaining $2,886 per ounce in the spot markets.
Triggers for Gold Price Rally
Stock market news: Anuj Gupta from HDFC Securities explained that spot gold price started their upward trend in the last week of December 2024 based on factors that drove prices for six consecutive weeks. The initial trigger for the financial movement was the buzz about US Fed rate cuts which intensified with the upcoming inauguration of President-elect Donald Trump as the 47th US President. The precious yellow metal maintained its status as a safe haven in the international market while economic uncertainty and trade war fears grew because of Donald Trump's protectionist policy.
Geopolitical Tension in the Middle East
According to Sugandha Sachdeva, US President Donald Trump's statements about Gaza Strip plans led to heightened concerns about regional geopolitical risks in the Middle East. Gold prices have experienced a rally during recent trading sessions due to this factor.
Rate Cuts by Central Banks
Major central banks' recent rate cuts have provided gold with additional support. The Bank of England executed a third consecutive reduction of 25 basis points over six months to lower its rate to 4.50%. The European Central Bank reduced its interest rates by 25 basis points to achieve a new level of 2.75%. A 25 basis point reduction was applied by the Bank of Canada.
