The way gold prices are continuously increasing this year has surprised the entire market. Gold has been trading with strong gains almost every month since January and is now heading towards its best annual performance after 46 years. On Monday, the gold contract for delivery on February 5 on MCX registered a rise of more than Rs 700. The previous closing price was Rs 1,27,667 per 10 grams, while today it opened at Rs 1,28,352. By 11:15 am, gold rose by Rs 713 to reach Rs 1,28,380 per 10 grams.

Why are gold prices continuously increasing?

The biggest reason behind this boom is America’s monetary policy. Investors expect the Federal Reserve to cut interest rates in December. When interest rates fall, non-interest investments like gold become more attractive, thereby increasing demand. According to a Bloomberg report, economic data is being delayed due to the government shutdown in the US, which increased uncertainty in the market and gave strong support to gold.

Gold is shining brightly in the international market also. On Friday it reached the level of about $ 4170 an ounce, which represents a gain of more than 2% in a week. Despite a slight fall in November, gold continues to remain above $ 4000 an ounce.

Support increased due to gold ETF and central bank purchasing

Inflows into gold ETFs have been increasing for three consecutive weeks, which clearly shows that investors are considering gold as a long-term safe option. Central banks around the world bought 220 tons of gold in the third quarter, 10% more than last year.

Will gold repeat the historical record like 1979?

Experts believe that this year’s strength is the biggest since 1979. Global economic tensions, geopolitical risks and a possible reduction in interest rates could push gold prices further. There is every possibility that it will remain brighter in the coming months.