Gold’s trajectory remains upward, with projections hinting at a potential surge of gold prices in 2024 to ₹70,000 per 10 grams, reflecting a continued ascent from the ₹63,060 mark on the MCX commodity stock exchange on 31st December 2023. Expert analyses anticipate this rise in gold prices in 2024 is driven by various factors including a stable rupee, geopolitical uncertainties, and a global economic slowdown.
This anticipated surge aligns with the metal’s remarkable performance in recent times. With the metal currently hovering around $2,058 per ounce internationally and showing stability above ₹63,000 per 10 grams domestically, its resilience becomes evident.
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Market movements have been influenced by global tensions, leading to sporadic price spikes in early December 2023. Moreover, the perception that the US interest rates might soften in the near future, has contributed significantly to the climb, fostering a surge from the previous lows observed over the past six months.
Despite intermittent volatility throughout the year, the gold prices in 2023 saw peaks of ₹61,845 per 10 grams domestically and $2,083 per ounce globally. This trend culminated in a record high of ₹64,063 per 10 grams and $2,140 per ounce in December 2023.
Analysts and market experts anticipate a continued rise in gold prices during the year 2024, projecting a potential spike to $2,400 internationally in 2024. Should the rupee maintain stability, this surge could propel gold prices to ₹70,000 levels. Factors such as impending elections in India, potential portfolio adjustments by Foreign Institutional Investors (FIIs), and global economic uncertainties might further bolster domestic gold prices in 2024.
Reflecting on the demand dynamics, experts note a potential impact on retail jewellery purchases in major consumer nations like India and China due to higher domestic prices. Yet, robust central bank buying and steady demand for bars and coins have sustained gold prices amidst other economic fluctuations.
The market’s appetite for gold remains robust despite the Federal Reserve’s interest rate hikes, with central bank purchases emerging as a substantial demand driver. However, challenges persist, including record-high domestic prices impacting consumer behaviour and economic downturns in key markets.
Overall, the trajectory of gold prices in 2024 hinges on various factors such as the dollar index, global economic conditions, and geopolitical stability. As uncertainties persist, gold retains its allure as a safe-haven asset and a hedge against inflation, setting the stage for an intriguing year ahead in the bullion markets.
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About the Author: Donald Gonsalves
