Record Gold Price Rise Influences Household Borrowing and Investment Decisions

Gold prices have surged to record highs, driven by factors such as geopolitical tensions, central bank buying, and currency depreciation. This rally has shifted household behavior in India, with increased gold-backed borrowing for major expenses and a decline in jewellery demand despite rising investment interest. While gold's appeal as a store of value grows, experts advise investors to carefully assess underlying drivers and historical trends before increasing exposure amid market uncertainties.