While Sitharaman Was Reading the Budget, Gold Prices Witnessed a Major Surge!

Impact of Previous Budget on Gold & Silver Prices

It is noteworthy that in July 2024, during the full budget, the Finance Minister had reduced import duty on gold and silver from 15% to 6%—the biggest cut ever. This led to a 104% increase in gold imports by August 2024.

Why Are Gold Prices Rising?

1. Global Gold Prices:

• In the international markets, spot gold prices surpassed $2,800 per ounce, creating a positive sentiment in Indian markets as well.

2. Safe-Haven Investment Demand:

• The U.S. government’s threats of imposing new tariffs on Mexico, Canada, and China have pushed investors towards gold as a safe investment.

3. Monetary Policies:

• Expectations of interest rate cuts by major central banks, including the European Central Bank (ECB), have further supported the rise in gold prices.

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What Should Investors Do?

Experts suggest that gold prices may continue to rise in the short and medium term. Due to global economic uncertainties and changes in U.S. policies, the demand for gold is expected to increase.

With Donald Trump possibly becoming the U.S. President again, trade tensions with China and Mexico are escalating due to potential higher import duties, leading to global trade disruptions.

Given this uncertainty, investing in gold remains a safe option.