Gold Rate Today: Gold Prices Reach An All-Time High; Know Why

Gold Rate Today: The future prices for gold have reached an all-time high on October 6 because of several key events, one of which is the recent shutdown of the US government, which is when the US parliament officials can't agree on a budget set for the upcoming financial year. This happens because the new budget has not been approved and the old one comes near to its expiry date. Moreover, the rising prices of goods due to inflation made many investors depend on gold as a safe-haven asset.

Recently, the MCX exchange has witnessed the price of gold for future deliveries shooting up unexpectedly, with delivery prices for December reaching an all-time high of Rs 1,20,075 per 10 grams, whereas deals for gold for the months of February and April also broke records by trading at Rs 1,21,350 and Rs 1,22,750 per 10 grams, respectively.

The gold prices have also shot up locally around major cities across India, for all purities of gold, especially 10 grams of 22K and 24K gold, on October 6.

The newest worries come from the US government with the reports of a government shutdown arriving due to disagreement about the budget set for the next financial year. This event has caused investors to quickly take refuge in gold as a safe-haven asset, as economic downturns are likely on the edge. Meanwhile, investors are also buying silver to float in the market as Comex Silver also stayed steady and is now getting closer to the USD 50 mark, showing just how much interest the investors have developed since the economic downturn.

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Gold prices skyrocket in India
Based on the recent trends, the gold prices have never climbed this fast, and experts suggest that any short-term price drops that one can expect might be due to investors selling off their assets to cash in profits rather than the commodity actually bringing a real change. As of now, one good reason to own gold is that the national banks can buy it, and more money is being pumped into gold-based funds such as Gold ETFs (Exchange-Traded Funds).

In simple terms, the USD 4000 might be hard to get past, but the overall trend around the globe is still positive despite the rise. So, investors are willing to buy only a little amount so as to make smarter investment decisions and protect their wealth.

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Why are gold prices going up?
The major reason behind the gold price spike is the recent US government shutdown due to disagreements about the financial budget. Meanwhile, US President Donald Trump has threatened mass firings if the citizens do not abide by the budget. As of now, investors are flocking to buy gold as a safe-haven asset, as slow economic growth with rising prices (stagflation) haunts the country. As a result, the only reliable investment as of now seems to be gold.