Global drivers, India role in gold surge

Strategic accumulation and awareness of global trends will be essential for investors seeking to capitalise on this historic rally of gold and silver

- HARISH GALIPELLI

THE PRECIOUS METALS market has experienced a historic rally, with gold and silver reaching unprecedented highs fuelled by geopolitical instability, economic uncertainty, and a surge in investor enthusiasm.

From steady accumulation to a fear of missing out (FOMO)-driven frenzy, participants ranging from central banks to retail investors have propelled prices to new peaks. This article examines the catalysts behind this surge, its implications for India, and the future trajectory of these metals.

Gold, after consolidating below $2,000 for nearly a decade, skyrocketed to an all-time high of $4,179, a 158% rise since November 2022, triggered by the Russia-Ukraine war. Silver has outperformed with a remarkable 360% increase from its March 2020 low of $11.63 to a high of $53.57. The gold-to-silver ratio, typically between 55 and 75, has surged past 80, reflecting gold’s out-performance and aggressive buying in undervalued silver in coming days.

Catalysts driving the surge

Geopolitical instability: Ongoing conflicts, including the Russia-Ukraine wat, West Asian tensions, and US-China trade disputes, have boosted safe-haven demand for gold and silver. Political uncertainty in Europe further amplifies this trend.

Central bank accumulation: