The price of gold surged again on Tuesday, climbing to around ₹66,800 per 10 gram in the domestic market. The rally was triggered by the US Treasury’s decision to broaden its buy‑back programme for older long‑term Treasury bonds, a move that revived worries about dollar debasement and pushed investors toward safe‑haven assets. The metal has already risen roughly 12 % over the past month, its fastest gain since early 2022. 3 % and the Nifty 50 hold steady around 19,800.
Higher gold prices tend to lift the valuation of jewellery manufacturers and gold‑related ETFs, while also nudging the rupee‑dollar exchange rate. 25 % import duty on gold remains unchanged, keeping the cost of physical gold relatively high. For the average salaried professional, the key question is whether now is the right time to add gold to a portfolio. The recent 12 % rise suggests momentum, but gold’s price can be volatile and is heavily influenced by US monetary policy.
A prudent approach is to consider staggered purchases through systematic investment plans (SIPs) in gold ETFs or sovereign gold bonds, which offer tax benefits and lower storage hassles compared with physical bars. Investors should monitor further US Treasury actions and global inflation trends, as any shift could reverse the current rally and affect the metal’s appeal as a hedge for Indian households.