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Why is the gold price rising every day in India?: In India, gold is not just a metal, but a symbol of tradition and financial security. The recent surge in its prices has raised concerns for both investors and buyers. Let's understand the technical and global reasons behind this.
1. Global Trade War and Tariffs (The Biggest Reason)
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Since the beginning of 2026, America has threatened to impose heavy tariffs (taxes) on China and several European countries. When a "trade war" begins between major world powers, the stock market tends to fall. In such a situation, investors withdraw their money and invest in gold, which has increased both the demand and price of gold in the international market.
2. US Dollar Fluctuations and Interest Rates
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The American Federal Reserve has indicated that it will cut interest rates in 2026. When interest rates in banks are low, people consider gold a better investment than Dollars or Bonds. The weakness of the Dollar is directly impacting the rising price of gold.
3. Heavy Buying by Central Banks
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Major countries around the world (like India's RBI, China, and Turkey) are reducing their dollar reserves and increasing their gold stock. When governments worldwide start buying gold, the supply in the market decreases, and prices skyrocket.
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4. Depreciation of the Rupee (₹)
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India imports most of its gold from abroad. For this, we have to make payments in Dollars. If the Rupee weakens against the Dollar, then gold becomes even more expensive by the time it reaches India.
The state of the rupee in 2026 has also played a significant role in increasing gold prices.5. Budget 2026 and Tax Fears
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There is considerable buzz among jewelers and investors regarding the Union Budget 2026, which will be presented in February. People fear that the government might increase import duties, leading to increased "advance buying," which is pushing up prices in the local market.
Estimated Today's Rate in Major Indian Cities (24K Gold):
- Mumbai/Delhi: ₹1,63,800 - ₹1,68,500
- Lucknow: ₹1,67,000 - ₹1,70,000
- Chennai: ₹1,69,200 (Highest due to local demand)
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