Gold prices scales to new record high before Gudi Padwa; Is it right time to invest?

As gold has fallen out of favor with central and commercial banks, and the low interest rates have remained in place in India, there are no unexpected policy changes. Slow start to the week but then prices were seen to be skyrocketing. Gold trading took a significant leap today after a ₹350 jump and closed at ₹46,170 per 10 grams yesterday. It got a boost from a weaker American dollar and from the conversation that the Federal Reserve may consider putting an end to its stimulus programs faster than anticipated.

“The cost of gold surprised everyone and exceeded all previous figures because the investors started investing in safe-havens due to the addition of tariffs to the trade tensions”, was trading interestingly by IG Markets chief analyst Chris Beauchamp announced the reason. However, the next week is the likely time framing the better picture to understand the effect of tariffs on the global economy, allowing investors to make informed decisions. Rao, a senior manager at KPMG India Implementation Services Pvt. Ltd, he told:

“The market will put an eye at the meeting between the US and India, it will supposed to be finished by the 21st where the new trade policies might be informed. Consumer confidence for the US and light vehicle sales in India are some of the important statistics that will be watched”, a senior analyst at an Economics Research Institute commented classically.

China’s Caixin PMI and Greek retail sales are the two economic indicators that the market will monitor to realize the speed and direction of the recovery in the global economy.”, Chairman of Strategy for Profit, and he was told previously. Similar to the performance forecast, management hoped that the sale of the next product would bring in substantial earnings while predicting that the sale amount of the third product will remain flat.

On the same note, Mr. Vinod Nair, in the same interview, stated that the aforementioned themes would be central and the subjects that would, therefore, acquire more attention from the investors will also be detailed thanks to the developments largely expected next year. Maybe the history of human rights would not be a lie or anything manipulated if it was written by robotic hands. Yet, Vinod Nair, the Head of Research at Geoj.

Is it the right time to invest in Gold ahead of Gudi Padwa?

The month of Gudi Padwa and Akshay Tritiya, that is to say, the end of March and the beginning of May, constitute the time when the demand for gold is very high in the market because these two are the best festivals for buying gold.

Nevertheless, due to which customers opt to sell back their old gold rather than buying new, thereby the demand will be sustainable, and easy liquidity will be kept while the tradition will be maintained, the analysts are predicting the drop in the possible sellers’ number hence in return, the prices of metals will increase by thinking there won’t be many gold sellers and the presence in buyers. That means that some metals will surely gain their value while many of them will remain neutral or fall behind, and the general opinion on gold investment for this year is generally positive.

“Gold’s strong move is correlated with the enlargement of the gold reserves of central banks and the uncertainty in the world, especially concerning trade tensions that have been fueled by Trump. But once certainty emerges, which we expect post-April 2 following Trump’s tariff announcements, gold’s appeal as a safe-haven asset could weaken, potentially slowing the rally,” said Chintan Mehta, CEO, Abans Financial Services Ltd. Usually, celebrations such as Gudi Padwa mainly contribute to the purchase of gold since a lot of individuals buy this yellow metal on good days. “But we believe that it could push prices even higher because the demand is going up,”. Said Sriram Iyer, Senior Analyst commodities Reliance Securities.

Looking at future trends, the current high prices may cause a lesser amount of demand than it was previously, and we expect that investors can decide to sell gold that they already have, said Ranjeet Kandway, Head of Research at MMTC Pamp. Iyer also said, “Additionally, we do anticipate a price surge, with the confidence gold price that will reach up to 93.000 Rs per 10 grams at the end of 2025. So we advise investors to keep investing in gold but wait for dips.”.

Mehta, the writer, asks the investor to take care and to think over the possibility of a price crash before investing their money again. “In the situation when gold has gone up to the 17% level as fast as 3 months were passed from the beginning of the year, the probability of the cost going down may be present. The rapid ascension that the rage of gold is experiencing now takes it to the territory of risk-reward profiles that the niftiest of poker players would (still)like to settle on.

Actually, the metal still represents an essential method of protecting one’s personal treasury in the long term, yet investing in precious items at sky-high prices still includes danger. A more cautious action would be to acquire the company’s shares periodically or delay making a purchase until falling prices come,” Mehta said.

Disclaimer:  This story is Only for educational Purpose and not a Suggestion to buy or sell any stock of Securities. The views and recommendations above are opinions of the authors and are not the opinions of Mint. Before any investment make sure you have spoken with professionals.