Owing to developments emerging from the White House, thanks to US President Donald Trump’s tariff wars, the value of the Indian Rupee, along with the Indian indices, further diminished in value on Monday.
This development has put the spotlight on gold, the most reliable investment tool for some, during times of crisis.
Gold Prices Surge
The price of gold has jumped significantly in the recent past. The value of the yellow metal is inching ever closer to the Rs 1,00,000 mark for 10 grams of 24k gold.
The volatility induced by Trump’s erratic decisions resulted in a crash at Dalal Street on Monday, February 3, as the Indian indices suffered majorly, with the marquee indices closing the day with major losses on the day.
This was also the first session after the Union Budget, which was presented by the FM on February.
There has been a surge of Rs 5,950 for 10 grams just in the past month of trade. |
When it comes to the Indian Rupee, the story is the same, the nation’s official currency dipped to the lowest at 87 for a dollar. As a result of this, some investors appear to have resorted to depositing their faith in Gold.
Gold, despite its poor returns, has often been seen as a haven during periods of uncertainties and volatility.
Gold Up, Rupee Down
As per data maintained by Good Returns, the price of 24-carat gold in Mumbai surged to Rs 85,200 for 10 grams. This is higher than the previous day’s settlement of Rs 84,050 for 10 grams.
The Indian Rupee On Monday |
This surge was a result of Rs 1,150 in a matter of a day. There has been a surge of Rs 5,950 for 10 grams just in the past month of trade.
This coincides with the consistent and incessant fall of the Indian rupee, which along with other global currencies, has been battered by a monstrously strong US dollar that has only seen ups since Donald Trump’s victory in November 2024.
The Indian rupee has dropped from 85.76 for a dollar to the current 87 for a dollar in a month.
