The price of gold
in India has risen by 3.7 per cent over the past month. A variety of factors are responsible for this.
“With the Federal Open Market Committee of the US Fed hinting that rate cuts are coming, the dollar has weakened, supporting the price of gold.
The global economy is slowing down, as reflected in the falling price of crude.
tends to benefit in such a scenario,” says Ajay Kedia, director, Kedia Commodity. Holdings of the SPDR Gold Shares have seen a sharp rise.
The central banks of Russia, China and several other major economies have purchased gold. Maintain a 10-15 per cent exposure to the yellow metal, in view of growing global uncertainty.