Gold is always considered a good option to invest. Over time, it has given steady returns, especially during tough times, unlike the stock market, which goes up and down.

Since 1971, gold has done well, just like stocks and bonds, and has provided good returns. More and more people are investing in gold each year, with demand growing by 10%. It is seen as a safe investment when there is inflation, political problems, or when the stock market is not doing well.

As of April 11, 2025, the price of gold has surged to $3220 per ounce and Rs. 93,000 in India, reflecting its increasing importance globally.

Countries with the Largest Gold Reserves:

• United States: 8,133.46 metric tons (72.41% of foreign exchange reserves)
• Germany: 3,351.52 metric tons
• Italy: 2,451.84 metric tons
• France: 2,436.97 metric tons

China and Russia have also increased their reserves. India holds 9.57% of its foreign reserves in gold.

Why Are Gold Prices Rising?

Several factors are pushing gold prices higher:

• Dollar Decline: A weakening dollar makes gold more attractive.
• Trade War: The ongoing tensions between the US and China increase demand for gold as a safe investment.
• US Bond Sales: Increased US bond sales make gold a safer alternative.
• Low Inflation: Low inflation and expected rate cuts in the US are boosting gold investment.

Impact of the US-China Trade War:

The US-China trade war has caused high tariffs on each other's goods, leading to market uncertainty. This has driven investors towards gold. Political instability in the Middle East and changes in leadership in Europe have also pushed gold prices higher.

Gold prices may continue to fluctuate due to global tensions. Gold-backed ETFs and national gold reserves are increasing right now, but it might be wise to wait before making gold investments. It is better to be in wait and watch mode until this trade war realted issues subsides.