Gold Price Increase / Riding on Trump's shoulders, gold will cross Rs 1 lakh

Gold Price Increase: Gold prices are always a topic of discussion around the world, and now America's newly elected President Donald Trump is making a strategy to control it. If his plans are successful, the price of 10 grams (1 tola) of gold in India can cross Rs 1 lakh. This may sound impossible, but there are some solid reasons and economic calculations behind it. Let us understand in detail how this can be possible.

America's gold reserve doubled

Ever since Donald Trump took power in America, he has started the work of getting back American gold from the world's largest gold reserve located in Thread Street, London. According to reports, so far more than 8000 gold bars have reached the New York Gold Reserve, increasing its reserves from 17.5 million troy ounces to 34 million troy ounces.

Importance of London's Gold Reserve

Gold worth about Rs 22 lakh crore is deposited in the vaults of the Bank of England located below Thread Needle Street in London. Many big business tycoons of the world and governments of various countries keep their gold safe here. The direct meaning of America calling back its gold is that in the coming time, there can be a huge jump in the prices of gold in the international market.

America's plan: How will the price of gold increase?

Donald Trump's plan to affect the prices of gold has two main aspects:

Increasing the gold reserve: By storing more gold with itself, America can limit its supply in the market.

Tariff on gold import: If America imposes a high duty (tariff) on gold import, then the price of gold in the international market can increase rapidly.

What will be its effect on India?

The demand for gold in India is very high. Gold imports have increased by 41% in the last few months. If the price of gold rises in the international market, then the price of 10 grams of 24 carat gold in India can be more than Rs 1 lakh.

Will this strategy be successful?

It is difficult to say how effective this strategy of Trump will prove to be, but if the US maintains control over the gold reserve and imposes a ban or tariff on the import-export of gold, it will have a direct impact on the global market.

Conclusion

Donald Trump's policies have always had an impact on the global market, and this new strategy can bring huge fluctuations in gold prices. If this plan comes into effect, then a huge increase in gold prices can be seen all over the world including India. It remains an important issue for investors and the general public as to which direction gold prices will go in the coming times.