Safe haven: With economic weaknesses, gold prices are likely to go up

The global economy is weak and supply-chain issues that started with the pandemic have been exacerbated by the Ukraine war and turmoil in West Asia. As a result, there's been inflation

Gold this year outperformed all other financial assets, and, indeed, it is one of the best performers in the past several years. Since January 1 it is up around 11 per cent in dollars and over 13 per cent in rupees, partly due to the currency factor. Since January 2024, gold is up over 42 per cent in dollars. 

The metal has a unique reputation as a reliable, traditional hedge against inflation and economic uncertainties. These factors have played their part in driving excellent returns. Central banks last year acquired 1,045 tonnes of gold, marking the third consecutive year of