Owing to the current market trend and the added excitement of Akshay Tritiya, India’s market for gold has seen an upswing in demand in the last some weeks. Last year, India’s gold demand rose by 9% to 727 tonnes, and it is expected to reach 800 tonnes this year.
With the ongoing global uncertainty, gold has once again proven its status of the best hedge against all odds. Followed by the Syrian bombings by the US and its allies UK and France, the tensions between Russia and the US have heightened, signalling a bigger chaos in global relationships.
If the usual follows, the dollar will weaken, thereby weakening the stock market with it, which will bring on the consolidation phase of gold, as it has basically recovered from its worst times. This, if happens as expected, would certainly bring in a bull market in gold. All this can be explained by the simple logics that always work for gold, the basics, that is.
Factors such as weakening dollar, the ever-existent demand for gold in India, and the risen demand of the metal during Akshay Tritiya, will definitely bring gold to a bullish trend. The price of gold have touched an all-time high of INR 32,000 this time. Looking at the trend and going by the speculation, if gold touches INR 33,000 per 10 grams and end with INR 32,000 this month, there are high chances it will also reach INR 34,000 in months to come.