Gold Prices Soar in India Amid Investor Demand for Safe-Haven Assets

Gold prices in India have been steadily increasing over the past few weeks, reaching a three-month high. Despite a slight dip on August 26 due to a strengthening US dollar, gold remains strong in India. According to Bullion.in data, 24-carat gold was steady at Rs 1,63,430 per 10 grams on August 26.

Silver has also recorded significant gains, rising by 3.24% in one week and 10.71% in a month. The rate of 999 fine silver stood at Rs 2,45,540 per kg on August 25.

Commodity expert Ajay Kedia attributed the short-term correction to profit-taking and a firmer dollar. However, he noted that underlying investment demand remained supportive, with gold-backed ETFs attracting 46.7 tonnes worth $6.4 billion last week, marking their strongest weekly inflow in 10 months.

The recent rise in gold prices can be attributed to several factors, including the developments in West Asia and concerns over rising government debt and budget deficits. Investors are watching the US government's Treasury buyback plans, which have renewed interest in gold as part of the so-called debasement trade.