Gold is trading at record high prices around $2200 (~Rs 66000) on strong demand from China, as Chinese investors are hedging against potential economic instability amid the commercial real estate crisis in their country. Moreover, lower growth concerns in other economies around the world is also supporting the prices. There are several other reasons why gold prices have increased in the United States. Some investors are trying to hedge against the possibility of higher-than-expected inflation, realign their portfolios after the stock market boom, and protect themselves from geopolitical instability. Concerns about wars between Russia and Ukraine and Israel and Hamas, as well as the upcoming presidential election in November, are among the concerns that investors have. As gold prices have run up too fast in the last week, we could see a bit of correction and retracement up to $2155 (~Rs 65000) and $2125 (~Rs 64400).
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