New Delhi,apr 22
Gold prices in India touched a historic milestone on Tuesday, crossing Rs 1 lakh per 10 grams. Experts believe that while this sharp rally may lead to a temporary correction, any fall from this level is likely to be limited to a maximum of 10 per cent.
Gold has traditionally been seen as a hedge against inflation and global economic uncertainty. With the current global economic situation marked by instability, investors are increasingly turning to gold as a safe and reliable asset. This trend has only grown stronger as gold continues to break records.
Rajesh Rokde, Chairman of the Gem and Jewellery Council of India (GJC), told ANI that such corrections in gold prices are natural after a steep rally and tend to be short-lived.
“Whenever there’s a sharp rally in gold, a 10 per cent correction is normal. It’s usually a temporary pullback and doesn’t last long. Overall, Goldman Sachs also expects gold to touch USD 4,000 per ounce. This rally is being driven by two key factors, de-dollarisation and increased gold purchases by central banks amid global economic uncertainty caused by tariffs,” he told ANI.
Rokde also pointed to the ongoing trade war between China and the United States as one of the main reasons behind the surge in gold prices. He noted that even China’s insurance sector is investing heavily in gold to protect against economic risks.
“In every rally, we generally see only a 10 per cent correction,” Rokde explained.
“For instance, when gold was at USD 1,000 per ounce, the correction would typically be around USD 100.
