Gold prices have undergone a transformation in our country, especially in the last few years. The ongoing Israel-Hamas conflict plays a vital role behind the recent gold price hike. According to the data provided by the World Gold Council, the average price of the precious yellow metal in our country was around ₹41,500 per 10 grams of 22-carat gold in September 2023. A closer look at the contemporary trends revealed that gold prices have started a reverse course, and its price has increased by almost 2%.

If you are planning to buy 24K digital gold, this is the perfect time as gold price is gradually rising in India. Last week the price of spot gold traded by over 1% and touched almost a month’s high of $2065/oz. The ongoing geo-political tensions in the Middle East and the fall in US bond yields are considered the two primary reasons behind the gold price hike in 2024. The hike got limited due to strengthening in the US dollar index, fall in crude oil prices and upbeat job data from the US.

2 External Factors Contributing to the Recent Gold Price Hike in India

• Geopolitical Turmoil

People consider gold as a safe-haven asset during geopolitical uncertainties. The ongoing Israel-Hamas war has increased the uncertainty and investors are willing to buy and sell digital gold. The escalating conflict is expected to enhance the demand for gold even further.

• Inflation

When investors predict global inflation, they preserve their wealth by turning it into gold. Though global economics have started recovering from the influence of the Covid pandemic, there is a chance for inflation to rise and so will the demand for gold.

2 Internal Factors Contributing to the Recent Gold Price Hike in India

• Cultural Ethos

Gold symbolizes good fortune and prosperity and has deep-rooted cultural significance in our country. The demand for gold tends to increase during the wedding season and so does its price.

• Traditional Purchases

Both gold and e-gold purchases are considered as a timeless investment in our country. People tend to buy and redeem digital gold when participating in cherished traditions associated with festivals or weddings.

Since all the factors contributing to gold price hike in India are in favour of investors now, you can consider buying 24k digital gold. myDigiGold, by Senco Gold & Diamonds, is a widely preferred digital platform for gold transactions where you can buy and redeem digital gold at the best price. You can visit sencogoldanddiamonds.com or any of our 150+ Senco stores to redeem the accumulated gold according to your convenience.

Disclaimer: The data provided on this blog is for general informational purposes only. The data is based on our research and understanding, and we cannot guarantee its accuracy or reliability.