On the day of Budget 2019 presentation, gold prices shot up to a six-year high of $1,439 an ounce internationally. In India, the rates reached almost Rs 34,500 per 10 grams of gold. The hike was a result of international geopolitical tensions and the announcement of increase in customs duty on the metal to 12.5 percent from the earlier 10 percent.
In the global scene, tensions between Iran and US as well as the expectations of the American Federal Reserve lowering interest rates also aided the rise.
However, there was a correction seen in the prices after poor economic data released for the European, American and Chinese.
So how to do you decide when to purchase gold?
The highs and lows of gold prices are momentary and they will keep constantly fluctuating.
If you are planning your gold purchase for a future event and for a substantial quantity, do not wait for the perfect timing. It is simply unpredictable as the international geopolitical tensions and state of the largest economies in the world make these rates very volatile.
There is US-China trade war, tensions between the US and Iran, global economic slowdown concerns, interest rate decisions made by major central banks and also political uncertainties that could impact the demand for the metal.
The best way to do it is start accumulating gold in small quantities every time the price dips, as this will eventually help average out on the overall price of the quantity of gold you intend to purchase.