Significant movement has resumed around gold, and a new target indicator has emerged. The Financial Times report states that there is an increase in gold purchases by central banks, and the prices of gold, which is considered a safe haven from geopolitical tensions, rising government bonds, and economic fluctuations, could reach new record levels within the next two years.
There are four main reasons contributing to the rise in gold prices. According to the report, fund managers expect gold prices to rise in the medium and long term due to demand for safe investments and concerns related to government bonds and the weakening rupee. Central bank purchases of gold have also become an important factor influencing the future of this precious metal.
According to the Financial Times, on Wednesday, the price of gold rose by 2%, reaching $4075 per troy ounce. This occurred against the backdrop of investors assessing the probability of further interest rate hikes by the US Federal Reserve.
The support for gold from central bank purchases is confirmed by data from the World Gold Council. This data showed that in September, central banks acquired about 63 tonnes of gold, which is the highest monthly purchase since November 2024. These figures were compiled using data from the Central Bank and the International Monetary Fund.
Following an initial price surge in January, when the value exceeded $5500 per ounce, there was a decline. Nevertheless, the price of the metal remains at historically high levels, and there is a possibility of setting a new record. From the perspective of the Indian market, gold prices could exceed 200,000 rupees per 10 grams.
Observations appeared when some stabilization occurred in the prices of gold and silver on the international market after a sharp sell-off earlier in the week. On Friday, October 16, gold futures on the COMEX traded at $4177.50 per ounce, showing a rise of 0.18%, while silver futures rose by 0.48% to $57.43 per ounce.
However, domestic gold prices faced pressure. On Thursday, the price of gold in New Delhi fell by 900 rupees to 149,000 rupees per 10 grams, marking the fourth consecutive day of decline. According to PTI, the price of silver decreased by 6000 rupees to 215,000 rupees per kilogram. Domestic prices were influenced by the strengthening rupee and reduced physical demand.