- Gold prices in India rose to a new peak above Rs 1,21,000 per 10 grams on October 1
- The US government shutdown contributed to the surge in gold prices amid global uncertainty
- Festive demand ahead of Diwali is influencing buyers' interest in gold and silver
Gold prices on Wednesday (Oct 1) traded at a new high of levels above the Rs 1,17,000 mark in India. The gold prices rallied by Rs 1,100 to breach the Rs 1.21 lakh per 10 grams mark in the national capital. As per PTI, the All India Sarafa Association said that gold of 99.9 per cent purity jumped Rs 1,100 and hit a fresh peak of Rs 1,21,100 per 10 grams (inclusive of all taxes).
The recent surge occurred amid the US government shutdown after Congress failed to approve fresh federal funding. The ongoing standoff could lead to the loss of thousands of federal jobs. The shutdown might also halt the release of a September employment report, slow air travel, suspend scientific research and even withhold pay from US troops.
Will gold prices increase further, and should people invest now?
Meanwhile, in India, buyers are discussing whether or not the prices will increase further, especially ahead of Diwali, when a large number of people buy gold and silver.
Mayank Misra, Vice President (Product) at INDmoney, told NDTV that the gold prices in India have hit a record high, driven by global factors such as expectations of US rate cuts, festive demand and ongoing geopolitical uncertainties.
"While further increases are possible if global instability persists, prices are likely to remain volatile, so short-term swings cannot be ruled out," he said.
Gold has long been regarded as a safe-haven asset and a reliable store of value, attracting investors across generations and economies. But it's not risk-free.
While commenting from an investment perspective, he said, "At these elevated levels, consumers should remember that gold remains a hedge against uncertainty but does not guarantee immediate returns."
"Diversifying through gold Exchange-Traded Funds (ETFs), digital gold, or systematic purchases can help balance risk instead of making large lump-sum investments now."
