InvestorQ : Why are gold prices on an uptrend in the last few weeks?
Aditi Sharma made post

Why are gold prices on an uptrend in the last few weeks?

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Mahima Roy answered.
3 weeks ago
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Normally, gold always rises at times of uncertainty and there is plenty of it now. Currently, in the midst of all the hue and cry over 6.32% US inflation, Chinese Evergrande crisis and the Indian IPO boom in digital stocks, gold has very silently scaled a 9-month high in line with global uncertainty. In fact, in the global markets, gold touched $1,861 per troy ounce after the US inflation announcement pushed many long term investors to the safety of gold.

Gold acts both as an asset and a currency so it becomes an effective hedge. Most investors are seeking hard-asset hedges against rising inflation risk after supply chain constraints continued to plague global markets. The months of December and January have been traditionally bullish months for gold due to year end uncertainty. However, there is a devil’s advocate argument that rate hikes could make gold unattractive due to opportunity cost.

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