Gold Prices Hit Record High: Should You Invest Now or Wait?

Gold Prices Hit All-Time Highs: Should Investors Jump In?

Gold is once again in the spotlight, nearing $4,000 per ounce—a new all-time high—driven by global uncertainty, political instability, and expectations of U.S. interest rate cuts. In India, prices have reached Rs 1,22,020 per 10 grams, according to goodreturns.com.

Investors are now asking: Should I buy now, or wait for prices to stabilise?

Why Are Gold Prices Rising?

The surge in gold is fueled by a combination of international and domestic factors:

• US government shutdown extending into its sixth day

• Political unrest in France creating global uncertainty

• Expectations of Federal Reserve rate cuts

Darshan Desai, CEO of Aspect Bullion & Refinery, noted:

“A combination of retail and institutional buying, along with hopes for a Fed rate cut, is keeping upward pressure on prices. If gold pulls back, it could be a buying opportunity for new investors.”

Central Banks and Institutional Demand

Global central banks continue to increase gold purchases to diversify reserves, while gold-linked ETFs have seen strong inflows. Bloomberg reports this year’s rally mirrors previous bull runs during the 2008 financial crisis and 2020 pandemic.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd., added:

“Gold and silver started the week with sharp gains, hitting fresh all-time highs. ETFs remain strong, with gold holdings up 17% and silver by 16% this year.”

Domestic Factors Supporting Indian Prices

The weakening rupee against the U.S. dollar further amplifies gold prices in India. Over the long term, gold has historically delivered about 11% annualised returns in rupee terms.

While jewellery demand may moderate due to high prices, investment through Gold ETFs, Sovereign Gold Bonds, and digital gold platforms remains robust.

Should You Buy Gold Now?

Experts advise:

• Long-term investors: Continue holding gold as a hedge against inflation, currency fluctuations, and economic shocks.

• New investors: Consider waiting for minor price corrections or pullbacks before entering the market.

Darshan Desai emphasised that even a slight dip from current highs could present a strategic buying opportunity.

Key Takeaways

• Gold is at record highs globally and in India

• Political and economic uncertainty continues to support prices

• Short-term corrections are possible, offering entry points

• Long-term outlook remains strong

Gold remains a safe-haven asset, shining brightest in times of uncertainty. Investors should weigh risk tolerance and investment horizon before making a move.