The royal allure of gold has always attracted investors as a safe haven asset. In recent days, the market has witnessed almost a 20% uptick in the value of this precious metal. We are here to detect all the factors driving behind this gold price hike in the global market, especially in India.

Gold Price Hike: an Overview

Both for the investors, and jewellery buyers, there is always a craving for knowing the current price of the yellow metal. A few days ago, the price was around Rs.77K for 10 gms of 24kt gold, as per the market reports. And nobody has seen such a high rise in the price graph in the last few decades. Let’s get to those factors which have been playing crucial roles in controlling this recent gold price hike.

1. Geopolitical Instability

We all are well aware of the situations in the Middle East and Ukraine, and that has put a big impact on the global market trends. Basically, any geopolitical insecurity around the globe can trigger risks amidst the investors’ marketplace. As a result, gold, the most well-known stable asset, price hikes in the international market. Likely, present instability also created tensions in the global market, followed by the gold price hike both in international and domestic markets.

2. War Situation in Ukraine

As we said earlier, insecure geopolitical situations trigger risk among investors. Especially when there is a lingering problem in Ukraine, recently gold prices have been extremely affected. And the most definite reason is that investing in gold is always safer than any other option. Hence, in these scenarios, the very first thing that gets affected is the prices of precious metals like gold, platinum, silver, etc. and diamonds.

3. U.S. Interest Rate Cuts

Though few know about it, the United States’ interest rate cuts also render a visible impact on the price of this safe asset. As per investors around the globe, investing in gold is always safer than any other interest-bearing asset, resulting in an increased demand for gold metal. As always, this demand has put an effective impact on the market trends.

4. Upward Trajectory in MCX

As you know, the Multi Commodity Exchange or MCX always had an effect in the pricing of the precious metal. In the recent gold price hike, an upward trajectory in the MCX graph has shown a powerful impact. MCX is actually the controlling body of the prices of several precious metals in the global stock exchange. Hence, any change in the MCX trajectories results in remarkable changes in gold prices

5. Dollar got Stronger

As USD is one of those global currencies that affects the trading markets worldwide, any change in the USD to INR exchange rates affects both gold and diamond rates in the domestic markets of India. A recent upward trajectory in USD rates is also pushing forward this inflation in gold rates.

If we only consider the recent gold price hike, then these factors are playing the most crucial roles in triggering upticks.