Opportune time to stock up on gold as global inflation surges, rupee falls

Low prices and the underlying demand for the yellow metal, coupled with high inflation are positives

The global surge in inflation has meant that investors are looking at safer options and one of the traditional havens during inflationary periods is gold. However, the international prices of bullion are $-denominated. So, the price of the yellow metal has not moved much because a strong $ puts a ceiling on the price. International prices have ranged around $1,700 an ounce, with a net drop of around 8 per cent in $-terms, in CY2022, after the US Fed hiked rates and the $ strengthened.

Nevertheless, a global scenario of persistent inflation should result in greater demand for gold, and