Gold Price Hits Rs.90,000: What Should Investors Do?:

Gold Price Hits Rs.90,000: What Should Investors Do? Gold prices in India are getting close to Rs.90,000 per gram after rising above $3,000 per ounce in global markets. Due to the fears of a recession and uncertainty in the US, Many investors are investing in gold as a safe investment option. Gold with 999 purity was being sold at approximately Rs.88,100 per 10 grams on March 17, 2025. Over the last week, gold prices have risen around 3%, influenced by the uncertainty over US tariffs, political changes, and rising prices. As per an expert, tariffs imposed by Donald Trump are expected to increase inflation and create economic uncertainty. As a result, gold prices have been reaching new record highs in 2025. Gold is often considered a safe investment during times of political instability or inflation, as it has the potential to protect money during uncertain times.

What’s driving Gold prices up?

There's been a surge in demand as Central banks around the world are accumulating their gold reserves. Additionally, inflation concerns and increasing demand after the pandemic have also led to a surge in gold prices. An expert has pointed out that gold's rise in 2025 has been impressive. Despite some ups and downs, gold has reached nine new record highs this year. Ever since President Trump started his campaign, he has consistently been focused on his 'America First' policy, which includes imposing tariffs on other countries. This has led to ongoing trade tensions and concerns about an economic slowdown. As a result, many investors have shifted towards gold as a safer investment.

Gold Price Forecast

In 2024, gold offered over 20% returns compared to Nifty's 8.7%. This has increased the interest of investors in Gold investments. As per an expert, it is expected that the interest rate can decrease in 2025 and individuals will shift towards gold to benefit from the higher returns. Gold prices are likely to keep rising as long as the market remains uncertain and unpredictable. The economic slowdown and job market issues in the US are raising fears of stagflation, a situation where the economy slows down while inflation remains high. This could lead to long-term inflation. Experts explain that gold performs well when there’s inflation, but it doesn’t perform well when interest rates are high or the US dollar strengthens. Gold has reached a major milestone of $3,000 per ounce, and its outlook seems good, with the potential for an 8-10% rise in price.

What should Investors do?

According to an expert, investors should be cautious and take a strategic approach. Rather than rushing to buy gold when prices are rising fast, it’s better to buy when prices dip, as the policy signals and macro risks continue to change. Another expert has warned that there might be some profit-booking from the investors, which could lead to the price volatility of gold. Therefore, it is suggested that investors should stick to a diversification strategy and consider investing in gold to manage long-term risk. Gold works as a hedge, and that is why experts recommend that investors should consider allocating 5-10% of their portfolio to gold. However, they also warn that gold can be volatile too, and there have been periods in history when its price hasn’t moved much.