Continuous Surge in Gold Prices Raises Eyebrows 

Gold is one of the most precious metals in the world, and people often opt to buy it for various occasions. But the constant rise in gold prices has raised eyebrows and left buyers wondering. There has been a significant increase in prices since 2025. In fact, gold prices have neared the mark of 2 lakh rupees for 10 grams. This drastic increase in the price has intensified because of inflation, a weakening US dollar, and various other factors. Along with this, increased economic uncertainties leading to inflation have created a pathway for the surgeon to raise the price. Let us take a look at the key factors which cause/ lead to rise in gold price.

Factors leading to the continuous rise in gold’s price

1. Geopolitical Problems :

Ideally, the prices of gold rise in the occurrence of global economic uncertainties. The reason is the sudden shift by investors from traditional market choices to safe assets, reaping profits. Certainly, the continued unrest in Ukraine and the Middle Eastern countries has been disrupting the global trade markets. They tend to be the most important factors leading to the diversion of investors’ attention. Even the political changes in Japan added fuel to the fire by driving up the gold prices. 

2. Central Bank Policies :

Generally, Central banks tend to accumulate gold for the purpose of diversifying their share holdings. As these large-scale financial institutions create extensive demand in the global market, you can experience a direct impact on the rise of gold prices. Indeed, the financial biggies like People’s Bank of China and the Reserve Bank of India have held their shares of gold reserves that range in billions. This has directly impacted the price of gold in the market. People are finding it difficult to invest in gold.

3. Global Currency Fluctuations :

The reduction of rates by the Federal Reserve has already weakened the value of the US dollar. Though the hope lies in the meetings to be held, a slight cut in rates is expected in the later months of 2026. Moreover, there has been a direct result of the weakened US dollar that has led investors to shift their attention towards gold. Apart from this, the Japanese Yen is facing a similar issue with currency fluctuations at its peak. Such a form of global currency fluctuations can create a lot of trouble in raising the gold rates. 

4. Import Duties :

India is dependent exceptionally on the import of gold from various sources overseas. In this regard, Indians bring a lot of gold every year from various places in the Middle East. This structural dependency might not change in 2026. This will keep domestic gold prices very similar to the global markets. Besides this, levying of customs charges, import duties, and expenses on logistics, act as premium additions to the gold prices, brought in the country. In fact, the changes in the Union budget have pushed over import duties and other charges, leading to the increase in gold rates. 

5. Stronger Demand in India :

People in India use a lot of gold. They tend to buy an extensive amount of gold jewellery and coins on different occasions. Be it a birthday, wedding, or anniversary, people like to buy or gift gold. On the other hand, constant political or currency fluctuations have led to the surge in rates. So, the buying power of the common man is reducing because of high prices in gold. 

Conclusion

With these factors leading to the increase in the prices of gold, people are finding it difficult to purchase. In fact, gold has always been considered as a perfect example of investment. But the surging prices have led people to shift their investment plans to other options. We know that the constant fluctuations in currency rates have affected the gold prices. It seems that this price surge will continue to occur, owing to the global tensions like imposition of tariffs by the US government. 

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