In India, the price of 24 carat gold reached Rs 77,390 per 10 grams.
Global trends supporting prices
In global markets, gold’s appeal has strengthened due to declining US Treasury yields. The 10-year Treasury yield declined for the third straight session, making zero-yield assets like gold more attractive.
This drop in yields is driven by expectations of future interest rate cuts by the US Federal Reserve.
According to Soni Kumari, commodity strategist at ANZ, “the easing of US monetary policy is a game-changer for gold prices as it sets the stage for greater investment demand.”
In addition to monetary factors, geopolitical uncertainties, including ongoing tensions in the Middle East, have increased demand for safe-haven assets such as gold.
“Safe-haven flows are heading towards gold due to risk aversion amid geopolitical threats,” said Renisha Chainani, head of research at Augmont – Gold for All.
Festive momentum in India
India, the second largest consumer of gold globally, is seeing strong demand ahead of Diwali and Dhanteras.
Colin Shah, CEO of Kama Jewelry, said gold prices are expected to rise further due to strong demand from jewelers and traders.
“We expect a 10-15% year-on-year increase in demand this festive season,” Shah said.
He highlighted the strong appetite of consumers compared to last year.
He predicted that gold could reach new highs as demand intensifies.
The perspective
Experts attending the London Bullion Market Association’s annual conference predicted that gold could reach $2,941 an ounce in the next 12 months.
Renisha Chainani predicts that gold could rise to Rs 78,500 per 10 grams if global trends remain favorable.
For investors, gold remains a safe bet as festive demand and global uncertainties drive up prices.
As the year progresses, all eyes will be on the United States. Federal Reserve and the outcome of global geopolitical events to determine the next movement of gold prices.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.