The 24 Karat Gold price in India showed a decline of 4.12 per cent from Rs 77,580 to Rs 74,380 in the last week. Experts are not ruling out similar performance for the month with a decline 3.72 per cent to Rs 77,250.
What’s worrying investors?
The factors to be considered for the weekly and monthly low include both domestic and international events. In the recent RBI monetary policy committee meeting that was held on October 9, RBI kept repo rate unchanged to 6.50 per cent for the 10th consecutive time.
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The recent victory of Donald Trump in the US presidential elections, has also built the expectations of stringent monetary policy, in future under Trump’s administration. Recently Federal Reserve Chairman Jerome Powell spoke about the new data on producer prices in the U.S. that showed that prices were rising a bit faster than expected. This made investors cautious that interest rates might not be cut consequently, which made Gold less attractive as an investment in comparison to Treasury yields and other government schemes.
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How has gold fared in last 1 year?
However, the Gold price performance in past one year suggests a positive trend from Rs 61,010 on November 17, 2023 to Rs 74,380 on November 15, 2024, an increase of 21.91 per cent.
Geopolitical tension has weighed on sentiment for investors across asset classes and Gold is considered a safe haven asset to invest. The Gold futures with expiry on December 5 2024, closed on Rs 74,031 lower than its lifetime high of Rs 79,.775.
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