Which path should investors choose when gold prices surge; only one way ahead

A rise in the price of gold was registered today. One gram of 22-carat gold rose by Rs 65 today. There was an increase of Rs 520 for a sovereign of gold. The market price of a gram of gold is Rs 14,885 today and that of a sovereign is Rs 1,19,080. The price of a sovereign yesterday was Rs 1,18,560.

With the escalating tensions in West Asia, the surge in fuel prices has raised concerns that it will increase inflation. This is likely to put pressure on the price of the metal as well. It is reviewed that the Federal Reserve and other central banks are likely to keep interest rates high for a long time or even increase them further. This is a setback for metals like gold, which do not pay interest or dividends.

However, in the face of continued heavy selling in global stock markets, investors are also relying on gold as a way to quickly find money. Therefore, gold can be considered a good investment. Experts believe that rising energy prices will also increase the demand for gold as a safe investment.

Meantime, the biggest concern is the disruption of shipping through the Strait of Hormuz, which handles 20 percent of the world's total oil sales. The crisis in the oil market is intensifying the threat of inflation. Stock indices in Japan, Korea, Singapore, Hong Kong and Europe suffered heavy losses yesterday.