Earlier this month, the gold prices had skyrocketed again due to tensions in the Middle East.
The price of gold is likely to touch ₹70,000 per 10 grammes in 2024, say experts. On Sunday, the price of 10 gms of 22 carat and 24 carat gold stood at ₹ ₹58,550 and ₹63,870 respectively.
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Earlier this month, the gold prices had skyrocketed again due to tensions in the Middle East. On May 4, the price of gold had hit a new high of ₹61,845 per 10 gms and $2,083 an ounce in the global markets. Six months later, the price touched a record high of ₹61,914 on November 16, Commtrendz Research director Gnanasekar Thiagarajan told PTI.
Thiagarajan added that it is expected that gold prices will eventually rise to $2,400 in the new year. If the rupee is stable, he added, the gold is likely to reach the ₹70,000 levels. With the general elections approaching, the rupee could weaken as Foreign Institutional Investors (FIIs) are expected to lighten up their portfolios, which could end up bolstering domestic prices for gold.
According to Kotak Securities vice president and head of commodity research Ravindra Rao, the retail jewellery purchase might face headwinds from higher domestic prices in India and China.
He added that the robust RBI buying alongside solid gold bar and coin demand had helped in the increase of the price of this precious metal amid increasing bond yields and a strong US dollar throughout 2023.
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Rao said that the RBI buying turned out to be a major demand driver for gold since the last few quarters. The high domestic rates and uneven monsoon ‘weighed’ on the Indian jewellery consumption. On the other hand, the Chinese economic downturn resulted in an increase in the jewellery demand.
All India Gem and Jewellery Domestic Council chairman Saiyam Mehra said the US Fed rate cut and geopolitical tensions mean that the weak rupee will lead to a surge in gold prices, expected to touch $2,250-2,300 and ₹68,000-70,000 in 2024. The high gold prices will affect sales further in 2024, and the business is likely to remain at the same level as 2023, he added.
(With PTI inputs)
