Why Gold Prices Are Surging Worldwide - China, India & Central Banks

Gold and silver prices have surged sharply, raising questions among investors - is this rally overdone or backed by solid fundamentals? Market experts say there is clear logic behind the rise. Central banks across the world, led by China and India, have been aggressively increasing gold reserves, even swapping forex holdings into precious metals. This global trend reflects growing demand for safety amid economic uncertainty. Unlike paper assets, gold and silver have limited supply, adding to their appeal. Silver also benefits from strong industrial demand, especially in electronics manufacturing worldwide. Short covering in precious metals is further supporting prices in the near term. While valuations may look stretched, experts believe this rally is not purely speculative and has strong global and structural drivers supporting it.