Gold is once again making headlines as prices in India inch close to all-time highs. With Diwali around the corner and global uncertainty rising, many people are wondering whether they should buy gold now or wait for a correction.
Across India, 24K gold has crossed Rs 12,000 per gram, while 22K rates are above Rs 11,000. Silver, too, is shining bright with sharp gains. The rally is not limited to local markets. Globally, gold has jumped past the $3,900-per-ounce mark for the first time in history, supported by safe-haven buying as investors seek protection from economic and political uncertainty.
WHAT IS DRIVING THE RALLY?
Several global and local factors are pushing prices higher. Concerns over a possible US government shutdown have delayed key economic data, adding to investor anxiety. The weakening US dollar and expectations of further interest rate cuts by the Federal Reserve have made gold more attractive. At the same time, ongoing conflicts such as the Russia-Ukraine war are keeping geopolitical risks high.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, believes the momentum may continue. “Bullion markets witnessed another strong week, with gold and silver extending gains and touching record highs. The precious metals found support from profit-taking in the dollar index, declining US bond yields, geopolitical uncertainties, and the US government shutdown,” he said.
He added that central banks added 15 tonnes of gold in September, signalling long-term confidence in the metal.
INVESTOR SENTIMENT REMAINS STRONG
Gold is often seen as a shield during troubled times, and that behaviour is clearly visible again. With inflation concerns still lingering and conflicts such as the Russia-Ukraine war showing no signs of easing, investors across the world are choosing stability over risk.
Ponmudi R, CEO of Enrich Money, explained, “Gold remains around $3,900 an ounce, signalling steady safe-haven demand but without unsettling broader risk appetite, keeping overall market sentiment constructive.”
Even gold-backed exchange-traded funds (ETFs) have seen increased inflows, suggesting that institutional investors are also joining the rally.
SHOULD YOU BUY GOLD NOW?
While prices are at record highs, analysts say that small corrections may occur along the way. Many believe such dips could be used as buying opportunities, especially for long-term holders.
Gold may not offer quick returns, but it has traditionally served as a strong insurance against inflation, currency weakness, and economic shocks. Those looking to invest should consider their financial goals rather than trying to time the market perfectly.
For individuals planning for weddings, future expenses or diversification, buying in small amounts, either through jewellery, coins, or digital gold, may be a sensible approach.
Simply put, gold remains a reliable safety net, just make sure you buy it wisely.
