Gold and silver prices are continuously increasing, know the reason behind this

There is a continuous increase in gold prices in the country. The main reason for the rise in gold prices is the geopolitical tension between Israel and Palestine. The ongoing tension in central countries has also affected the prices of crude oil and gold. Now all the countries are working to bring out the people trapped in the war area safely. After the ongoing tension between the two countries, gold prices are rising on the Multi Commodity Exchange (MCX). On the previous day i.e. October 12, 2023, gold closed at Rs 57,883 and silver at Rs 69,663.

The price of gold has increased by approximately Rs 1,500 for 4 consecutive days in this business week. A rise of Rs 3,900 has also been recorded in silver. Now in such a situation, the question arises why has the ongoing tension in the central countries affected the prices of gold and silver?

Metals like gold and silver are related to war. When there is no war-like situation in the world, investors invest more in the market. In such a situation, he gets the benefit of good returns. They get higher returns compared to other assets. At the same time, in war-like situations, the stock market is negatively affected. In view of the war situation, investors invest less in the stock market.

He started investing in gold and silver. These metals are considered the safest. If any investor ever faces risk in the stock market, he can compensate for it with gold and silver. For this reason, there has been a rise in the prices of gold and silver.

The biggest reason for the rise in the prices of gold and silver in the Indian markets is that India is the largest producer of these metals. Buying gold and silver during the festive season is considered auspicious. As Navratri is starting on 15th October, after this festivals like Dhanteras, and Diwali will also come. In such a situation, many people will buy gold and silver in this festive season. Due to this also their prices are sure to increase.