Over time, gold has shown to be an excellent inflation hedge. Gold is becoming more and more of a significant investment for investors. In India, the current price of gold is Rs 60,010 per 10 grams for 22-karat gold and Rs 65,560 for 24-karat gold. Meanwhile, Silver opened at Rs 74,444 per kg and hit an intraday low of Rs 73,840 on the Multi Commodity Exchange (MCX).Its important to note that these are just the wholesale prices, and the actual price you pay for gold and silver jewelry or bars will be higher, depending on the retailer and other factors. It is worth noting that there are several reasons that are responsible for the rise in gold prices: Central bank buying: Central banks around the world, particularly in Asia, have been buying gold in recent years to diversify their reserves and protect against inflation. This increased demand from major institutions puts upward pressure on the price.Limited supply: Gold is a finite resource, and the rate at which it can be mined is limited. This means that any increase in demand can lead to a significant increase in price if supply cannot keep up. Additionally, disruptions in gold mining due to factors like lockdowns can further limit supply and contribute to price increases.Interest rates: Gold often moves inversely to the US dollar. When interest rates are low, the dollar weakens, making gold more attractive to investors seeking alternative investments. Recent changes in interest rate expectations have also played a role in the recent price movements.
