As we enter 2024, experts, quoted by PTI, predict a noteworthy surge in gold prices, projecting a peak at ₹70,000 per 10 grams in the domestic market. Fueled by a stable rupee, geopolitical uncertainties, and a global economic slowdown, gold continues to stand out as a resilient investment.
Gold’s Performance in 2023
Amidst fluctuations, gold hit peaks of ₹61,845 per 10 grams domestically and $2,083 per ounce globally in 2023. The metal’s safe-haven status came to the forefront, reaching an all-time high of ₹64,063 per 10 grams and $2,140 per ounce in December, reflecting its resilience amid global uncertainties.
2024 Projections: Stability and Election Impact
Forecasts indicate a further climb, anticipating ₹70,000 per 10 grams in 2024. With a stable rupee, attention turns to the impact of elections, potentially influencing rupee strength against the U.S. dollar and shaping the trajectory of gold prices.
Central Banks and Market Factors
Central banks played a crucial role in driving gold demand in 2023, setting records. Robust central bank buying, coupled with solid bar and coin demand, mitigated challenges from surging bond yields and a strong U.S. dollar. The U.S. Federal Reserve’s interest rate hikes added to gold’s dynamics.
Retail Challenges and Economic Factors
Despite potential headwinds in retail jewelry buying due to higher domestic prices, gold’s enduring appeal remains strong. Geopolitical uncertainties, a slowing global economy, and economic factors contribute to the metal’s attractiveness, even in the face of potential rate increases.
Industry Insights and Outlook
Industry leaders, quoted by PTI, offer diverse perspectives on gold’s impact on sales. Projections from the Gem and Jewellery Domestic Council (GJC) and Gem Jewellery Export Promotion Council (GJEPC) reflect a mix of optimism and caution, highlighting the complex interplay of global conditions and economic factors.
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