• Thu. Jul 25th, 2024

Gold price In 2024 : ‘Gold price may touch ₹72,000 per 10 gm in 2024’

ByNishat Manzar

Jan 1, 2024

Gold, the precious metal revered for its beauty, cultural significance, and historical role as a hedge against economic turmoil, continues to captivate the Indian market. As we step into 2024, whispers of a potential price surge have sparked excitement among investors and commoners alike. Could the yellow metal touch a record-breaking ₹72,000 per 10 grams by year-end? Let’s delve into the factors influencing this forecast and explore the potential implications for India’s gold landscape.

Gold price In 2024 : Global and Local Tailwinds for Gold

Several global and local factors are fueling optimism for gold prices in 2024:

  • Geopolitical Tensions: Ongoing geopolitical uncertainties, including the war in Ukraine and escalating tensions between major powers, are driving investors towards safe-haven assets like gold. The increased demand for gold during periods of global risk averseness often translates to higher prices.
  • Monetary Policy: Central banks across the globe, including the US Federal Reserve, are expected to slow down the pace of interest rate hikes in 2024. This could weaken the US dollar, making gold, which is inversely correlated with the dollar, more attractive and potentially pushing its price upwards.
  • Inflationary Pressures: While inflation is projected to cool down in 2024 compared to 2023, it is likely to remain above pre-pandemic levels. Gold, historically recognized as an inflation hedge, tends to perform well in inflationary environments, attracting investors seeking to protect their wealth.
  • Indian Festive Season: In India, the festive season from October to December witnesses a surge in gold demand due to cultural traditions and auspicious ceremonies. This seasonal spike in demand, coupled with the aforementioned global factors, could significantly influence gold prices in the latter half of 2024.

Gold Price In 2024:India’s Unique Gold Story

India’s relationship with gold transcends its economic value. It is deeply embedded in the country’s cultural fabric, used for adornment, gifting during auspicious occasions, and considered a secure store of wealth for generations. This unique dynamic adds another layer of complexity to predicting gold prices in the Indian market.

  • Rupee Depreciation: The depreciation of the rupee against the US dollar has the potential to inflate the domestic price of gold, even if global prices remain relatively stable. Should the trend of rupee depreciation persist throughout 2024, it could exacerbate the upward trajectory of gold prices in the domestic market. The interplay between currency exchange rates and gold valuations underscores the importance of considering global economic dynamics in assessing the potential impact on the domestic pricing of gold, thereby highlighting the intricate relationship between currency trends and the cost of this precious metal in the Indian market.
  • Rural Demand: The burgeoning disposable income and enduring cultural affinity for gold in rural India are poised to play a substantial role in shaping overall demand. The sustained and robust demand emanating from rural markets is anticipated to serve as a resilient buffer, potentially mitigating the impact of any substantial price corrections. The cultural and economic dynamics in rural areas, coupled with the traditional value attributed to gold, create a foundation for continued interest and uptake of the precious metal, potentially influencing its market stability and reinforcing its integral role in the socio-economic fabric of rural India.
  • Government Policies: Indeed, government policies, including import duties and taxes, wield a significant influence over gold prices. Anticipated alterations in these policies throughout 2024 have the potential to impact the affordability and demand for the precious metal. As governments reassess and recalibrate economic measures, investors and stakeholders in the gold market should remain vigilant and attuned to any policy shifts, as these adjustments can exert a noteworthy influence on the dynamics of gold pricing, ultimately shaping its accessibility and appeal to consumers.

Gold Price In 2024 : Navigating the Uncertainties

Although the prospect of a ₹72,000 valuation for gold presents an intriguing possibility, it’s imperative to acknowledge the inherent volatility of gold prices, susceptible to the influence of numerous factors. Accurately predicting their trajectory is inherently challenging.

For prospective investors and individuals contemplating gold purchases in 2024, a prudent and cautious approach is strongly advised. Prior to making any investment decisions, it is crucial to diversify your portfolio, engage in comprehensive research, and discern your risk tolerance. Seeking counsel from financial advisors well-versed in the intricacies of the gold market can offer valuable insights and guidance, aiding in informed decision-making.

Beyond the Numbers:

Irrespective of the undulating price dynamics, the timeless allure of gold in India is poised to endure. Rooted in its cultural significance, emotional resonance, and perceived value as a steadfast long-term investment, gold’s demand is expected to persist across the nation. As we witness the unfolding trajectory of gold prices in 2024, it remains imperative to acknowledge that the true worth of this precious metal often transcends its market valuation. Gold embodies tradition, celebration, and a profound sense of security, intricately woven into the intricate tapestry of Indian life for generations.

Therefore, whether gold attains the milestone of ₹72,000 or converges to a more moderate valuation, its enduring charm in India is anticipated to radiate brightly, mirroring the nation’s unique and profound relationship with this ageless and revered metal.