Gold price rises by Rs 1000 in one day hitting an all time high of Rs 65k per tola; Find out the reasons behind it

The Gold prices has gone uphill for this month and that too in quite a momentum. The table below shows the prices of Fine gold, Tejabi gold and silver from June 11 till Today (June 21).

The price of Fine gold per tola has risen by Rs 2,700 in a period of 10 days and more surprisingly, it has increased by Rs 1000 in just one day. Such rise in gold price is being pushed by both national and international factors, which we will be discussing further.

The latest report by World Gold Council (WGC) shows that the central banks have been buying and accumulating gold. These countries are mostly from Asia (China, India and Kazakhstan) and Europe (Russia, Poland and Hungary). Therefore, the spot gold prices has surged to the new high in five years at $1,405.50 today.

The raised demand in gold has been pushed by increasing global tension and slowing American economy. The Fed meeting (Meeting of central bank of America) held on Wednesday kept the fed rate constant for now but left a door open for rate cut in the near future. This has riled the international marketers, as investors and countries alike, are starting to hoard gold instead of dollar due to fear of weakening dollar value.

These factors has raised the price of gold world wide and in a more domestic level, this rise is also being pushed by recent tax imposition by the government.