Gold prices in India has reached a new record on Wednesday that is on March 19 by surpassing ₹90,000 per 10 grams. At the same time silver has hit an all-time high breaching ₹1 lakh per kg. This sharp rise in precious metal prices is driven by global economic concerns and increasing trade tensions between the U.S and Europe.

One of the main reasons behind this price surge is the trade conflict between the U.S and Europe. Recently the U.S government has announced plans to impose tariffs of up to 200% on European alcoholic beverages including wines and champagnes. This move was a response to the European Union’s decision to levy a 50% tax on American whiskey. The escalating trade war has created market instability by pushing investors toward safe-haven assets like gold and silver.

Also weak U.S. inflation data has further supported the hike in gold prices. The U.S. inflation fell to 2.8% in February lower than the expected 2.9%. This decline has fueled speculation that the U.S. Federal Reserve might cut interest rates soon. Lower interest rates generally weaken the U.S dollar by making gold more attractive as an investment.

Market analysts believe that gold and silver could witness some consolidation after their sharp rally. But the overall trend remains positive. Investors are advised to follow a “buy on dips” strategy meaning they should look for opportunities to invest when prices temporarily decline.

Economic data releases in the coming days such as U.S. retail sales as well as industrial production figures and housing market trends will provide further insight into the global economy. These factors would influence gold and silver prices in the near future.

If trade tensions persist and the U.S. economy shows signs of weakness then gold prices may continue to rise as per the experts prediction. Investors are closely monitoring global economic trends to exactly determine their next moves.

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