✅ 1. Inflation Hedge

• Gold is seen as a safe store of value during inflation.

• As the cost of goods rises, people invest in gold to preserve purchasing power, driving up demand and price.

✅ 2. Currency Depreciation (₹ vs $)

• Gold is traded internationally in USD.

• When the Indian Rupee weakens against the US Dollar, gold becomes more expensive for Indian buyers.

• Even if global prices stay stable, domestic gold prices may rise due to exchange rate effects.

✅ 3. Global Uncertainty & Crisis

• During geopolitical tensions (like wars), financial crises, or pandemics, people turn to safe-haven assets like gold.

• Example: Gold surged during the COVID-19 pandemic and Russia-Ukraine conflict.

✅ 4. High Demand in India

• India is one of the largest consumers of gold (for weddings, festivals, investments).

• Cultural demand + limited domestic production = reliance on imports → prices remain elevated.

✅ 5. Limited Supply

• Gold is a finite resource, and mining it gets more expensive over time.

• Slower supply growth vs. rising demand = natural price appreciation.

✅ 6. Low Interest Rates Globally

• When interest rates are low, returns on fixed deposits or bonds are also low.

• Investors turn to gold, pushing up its price.

• Central banks also tend to buy more gold in low-rate environments.

✅ 7. Central Bank Buying

• Countries like China, Russia, and India have been increasing their gold reserves.

• This institutional buying creates additional upward pressure on prices.

Historical Snapshot (Indicative Trend)

(Note: Prices fluctuate daily and vary slightly by city and purity)