New Delhi ,mar 7
Continued uncertainty in the geo-economic situation indicates the trend of rising inflation, which goes in favour of gold, according to the World Gold Council (WGC).”Rising inflation expectations, lower rates, and continued geo-economic uncertainty are playing in gold’s favour,” said WGC.
Gold prices have been on an upward trend, with February seeing multiple new highs before pulling back to end the month at USD 2,835 per ounce, marking a 0.8 per cent increase, according to the WGC.The rise in gold prices has been supported by continued inflows into COMEX inventories, driven by ongoing tariff uncertainties. This trend has been observed across global currencies, with many hitting record highs.One of the primary factors driving gold’s price surge has been the weakening US dollar, according to the Gold Return Attribution Model (GRAM).
Additionally, increased geopolitical risks and falling interest rates have contributed to gold’s strong performance in the past few months.Despite a slight drag from January’s price appreciation, gold’s safe-haven appeal remained strong, as evidenced by record-high net inflows of USD 9.4 billion (100 tons) into gold exchange-traded funds (ETFs) – the highest since March 2022. These inflows were led by US- and Asia-listed funds.
