Gold prices in India surge to ₹95,730 as dollar weakens
What's the story
Gold prices in India witnessed a sharp rise today, with the price of 24K gold per 10g reaching ₹95,730.
This is a ₹220 increase from yesterday's price of ₹95,510.
The rise in gold prices is due to a weaker US dollar, which dropped 0.3% against other currencies, making gold more attractive to overseas buyers.
Global trends
International gold prices also see an uptick
The international gold market also saw a positive trend today.
Spot gold prices rose 0.5% to $3,256.85 per ounce while US gold futures rose 0.7% to $3,265.10 per ounce.
These global price changes are largely driven by fluctuations in the value of the US dollar, affecting demand for this precious metal across the world.
Market watch
Investors eye Fed's upcoming policy meeting
Market analysts are closely tracking developments in US-China trade relations as US President Donald Trump pushes for a fair trade deal with China amid rising tariffs and retaliatory measures from both nations.
Investors are also eyeing the upcoming Federal Reserve meeting. Many expect an 80 basis points rate cut this year starting in July, following a strong US jobs report for April.
Investment trends
Gold's appeal as a safe-haven investment
The expected rate cuts make gold even more attractive as a non-yielding asset and safe-haven investment in the face of continued economic uncertainty.
Gold has always been a great hedge against inflation and uncertainty in global markets.
It usually performs well in low interest rate environments where it competes with other non-yielding assets for investor attention and capital allocation.