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What is the reason for the gold price rise: Investment in gold is considered safe. The reduction in customs duty rates was announced in Budget 2024, after which gold prices have been witnessing a steady rise. Prices have reached record highs this month. The yellow metal remains an attractive asset for Indian investors. According to the Bullion Association, the price of gold was at Rs 75,940 per 10 grams at 2:05 pm on the last trading day. Prices had reached Rs 76,390 in the first week of October and futures prices also crossed Rs 75,000. The rise in gold prices has been stable for the last few months, but since the beginning of this month, prices have remained above Rs 75,000.

Akshay P Bhagwat of JM Financial said, "Gold as a commodity has seen a strong rally. In the short term, it has seen a slight corrective move, providing an opportunity to buy on dips."

Why are gold prices rising?

Global cues like interest rate cuts by the Fed and other geopolitical tensions have pushed gold prices to record highs. Moreover, given the turmoil in all international markets for a long time, gold remains a safe investment.

Can the rise in gold prices come to a halt?

Some analysts have feared a halt in the rally in gold prices, but global cues such as interest rate cuts by the Fed and other geopolitical tensions have pushed gold prices to record highs. "In the long term, given all the international turmoil, gold remains a safe financial asset in which investors park a part of their wealth," Bhagwat said.

The outlook on gold prices remains positive. The yellow metal is being seen from a safe investment perspective amid market volatility and global conflicts. He further said, "Talking about targets, $3,000 is being achieved on the long-term chart."

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