In the periods when central banks are flooding the global banking system with freshly printed money, investors tend to migrate towards inflation-protection assets. With the markets expected to be volatile the precious metals are expected to soar during the current turn of events. The yellow metal, which always served as the best means to hedge against inflation started trading higher. The uncertainties of the markets are also showing up on the price of the gold in the past year.
The platinum price soared up and hit record highs because of the labor unrest in the mining sector. The prices are expected to move higher up with the markets expecting a production deficit.
The BRICS want to have easy convertibility of currency amongst them selves without having to always use the US dollar. The yellow metal provided BRICS the alternative they were looking for. The demand for gold from the central banks has been on a rise. India being an importer of the gold, the price of gold varies with the exchange rate. The depreciation of Indian Rupee meant that though the international gold price remained below its record high, it reached record high in India.
