As the festive season approaches with Diwali and Dhanteras, gold and silver prices are reaching new highs. The price of 24-carat gold is nearing the Rs 80,000 per 10 gm mark, driven by the usual surge in demand during this time. Gold purchases around the festive season are common, both for investment purposes and as gifts for loved ones.
Week-on-week, gold prices have shown significant fluctuations, influenced by rising geopolitical tensions and festive demand. Known as a safe-haven investment, gold is often sought after in uncertain times, offering assurance and stability to investors.
Gold to maintain upwards momentum
Gold prices have surged nearly 37% over the past year, driven by fluctuating currency rates and ongoing geopolitical instability. This substantial increase, compared to October last year, highlights gold’s enduring appeal as a safe-haven investment during times of uncertainty.
A two-year analysis reveals even more dramatic growth, with gold prices soaring by 64% since October 2022. This sharp rise underscores the strong influence of global factors—ranging from economic concerns to geopolitical tensions—on the metal’s demand. As currency volatility and external pressures continue, gold remains a key asset for investors seeking stability.
Experts on Gold Outlook
Commenting on the gold outlook Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said that Gold prices maintained a positive stance as the dollar remained muted near 104.4. After witnessing some selling pressure yesterday, which saw prices drop to Rs 77,600, gold quickly rebounded to Rs 78,350, posting a gain of Rs 500 from yesterday’s lows. This recovery highlights the strong underlying sentiment for gold, which continues to benefit from the broader macroeconomic environment, particularly as the U.S. dollar stabilizes.
Also ReadSEBI proposes mark-to-market valuation for MFs’ short-term repo deals
Trivedi also added that one of the key data points that the market will focus on this week is the Initial Jobless Claims on Thursday, which are expected to come in at 243K, slightly higher than the previous 241K. If the claims come in lower than expected, signaling continued economic strength in the U.S., this could pressure gold prices as it would suggest a resilient economy that might slow down the pace of interest rate cuts. Such a scenario could lead to a minor retracement in gold prices, with support levels at Rs 77,000 – Rs 77,500 being crucial remains bullish.
» Read More
