Gold is Glittering Again – But This Time, It’s About Fear, Not Just Inflation

If you've been tracking gold prices lately, you’ve probably done a double-take. Yep, you read it right, 24-karat gold in India has soared to ₹93,390 per 10 grams, while 22-karat is at ₹85,610 and 18-karat is touching ₹70,050. Meanwhile, across the globe, U.S. gold futures just jumped 3.2% to $3,177.5, according to Reuters.

So, what’s going on? Why is gold having such a moment?

Turns out, it’s not just inflation or the usual seasonal demand. It’s fear. And that fear is rooted in growing global tensions, particularly the trade war between the U.S. and China, a weakening dollar, and even concerns over a potential recession in the U.S.

Nitesh Shah, a commodities strategist at WisdomTree, nailed it when he said gold is “clearly seen as the favoured safe-haven asset in a world upended by Trump’s trade war.” Investors are losing faith in traditional safe zones like U.S. Treasuries, especially with the dollar taking a hit and bonds facing a major sell-off.

Add to that shaky global growth, and you’ve got a recipe for a gold rush.

Manav Modi from Motilal Oswal Financial Services put it simply: “The rise in gold prices is not just about inflation, it’s about fear.” And it makes sense. When the global economic narrative feels uncertain, gold becomes more than just a shiny metal, it becomes a symbol of safety, stability, and long-term value.

So, what’s the takeaway? If you're an investor or even just someone watching the world economy shift, this is a moment worth paying attention to. Gold is sending us a message, and it’s loud and clear: when markets shake, gold shines.

Till next time,Stay curious. Stay invested. Follow BestVantage Investments.