Sudden Jump in Gold Prices: Will the Rally Continue? Here’s What Experts Say
After falling continuously for six days, gold prices saw a sudden and sharp rise today. While the price had dropped by ₹4,500 per sovereign over the past week, it unexpectedly increased by ₹800 per sovereign this morning, leaving investors confused about the trend in the coming days.
Gold, which was priced at ₹57,000 per sovereign in January, climbed to a historic ₹97,000 per sovereign in October. However, after predictions that the price may soon hit ₹1 lakh, the market witnessed a surprising downward trend. In the past week alone, gold fell by nearly ₹5,000 per sovereign, encouraging many buyers to start purchasing again.
But today’s sudden spike has shocked those who expected the decline to continue. In Chennai, the price of one gram of gold, which was ₹11,400 yesterday, has increased to ₹11,500 today. A sovereign now sells for ₹92,000, up by ₹800.
Why Is Gold Fluctuating?
Experts note that several global economic factors are influencing gold prices daily - including US economic data, global market instability, China–Japan political tensions, and uncertainty surrounding the US Federal Reserve’s interest rate decisions.
Market analyst Praveen Singh says,
“Gold is currently moving within a fixed range. ‘Buy on Dips’ remains a good strategy. With continued uncertainty over Fed rate cuts, prices may fluctuate mildly but are unlikely to move sharply beyond ₹1 lakh in the near term.”
Global Indicators Driving the Trend
Inflation fears pushed spot gold to $4,245 on November 13 before a slight correction due to doubts over a Fed rate cut.
Spot gold ended last week with a 2% gain at $4,084, despite dropping 2.6% over two days.
Weak economic data from China, especially in the real estate sector, has increased global investor anxiety - a positive driver for gold prices.
Rising tensions between China and Japan may also push safe-haven demand higher.
The US Dollar Index, currently near 99.45, has put limited pressure on gold, but expectations of a future interest rate cut continue to support the market.
Economists say gold prices are likely to remain unpredictable for some time, keeping investors alert as global economic and political uncertainties evolve.
