One of the primary reasons behind the rise in gold prices is the increasing demand from central banks. The Reserve Bank of India (RBI) has been seeking to diversify its overall reserves, a strategy driven by negative interest rates in the past, the weakening of the dollar, and growing geopolitical uncertainty. Central banks in Singapore, China, and Turkey have also been buying gold. In the calendar year 2022, central banks around the world purchased a record 1,136 metric tonnes of gold. This increasing demand for gold from central banks has resulted in an upward trend in gold prices in India.

Another factor contributing to the rise in gold prices is the uncertainty in global markets. With tensions between major economies and the ongoing COVID-19 pandemic, investors are turning to gold as a safe haven. Gold has traditionally been seen as a safe store of value during economic uncertainty. The recent rise in gold prices indicates investors' concern over the current global economic and political climate.

Furthermore, the weakening of the US dollar has also contributed to the increase in gold prices. Gold is traded in US dollars, and a weaker dollar means that investors will need more dollars to purchase the same amount of gold. The US dollar has weakened in recent months due to factors such as rising inflation and the Federal Reserve's decision to keep interest rates low.

To further analyse this trend, We have put together a table of the gold prices in India over the last ten days. As we can see from the table, the cost of 22-karat gold has been steadily increasing since the beginning of the month, with a slight dip on the 9th of May. The price of 24K gold has also been on a steady upward trend, with no significant dips over the last ten days.

Gold Rate in India for the Last 10 Days (10g)

Looking at the table, we can see that gold prices have remained largely stable, with minor fluctuations. While it is difficult to predict the future of gold prices with certainty, it is likely that the factors discussed earlier will continue to influence the price of gold in the near term.

In conclusion, the rise in gold prices in India can be attributed to several factors, including the increasing demand from central banks, global economic and political uncertainty, and the weakening of the US dollar. As a market analysts, We predict that this uptrend in gold prices is likely to continue in the near future, as the factors driving the rise in prices are still prevalent. Investors should closely monitor the gold market and consider diversifying their portfolios to include gold as a safe-haven asset.