Gold prices at all-time high, experts predict it may soon reach Rs 78,000 per 10 grams…

Mumbai. Gold prices reached a new record level on Tuesday. During the session, the spot price of gold reached $ 2,638.37 an ounce, while US gold futures rose to $ 2,661.60. The price of 24 carat gold in India rose to ₹ 76,330 per 10 grams.

This is a sign of continuation of the upward trend of gold, the precious metal had touched an all-time high yesterday as well. The surge in gold prices suggests that they may soon reach close to ₹ 78,000 per 10 grams in the Indian market. Factors Driving Gold Prices The recent surge in gold prices can be attributed to several major factors:

Fed rhetoric: US Federal Reserve officials have suggested rate cuts, with futures traders estimating a total reduction of 75 basis points by the end of 2024. This environment generally favors gold as a safe investment. Low interest rates reduce the opportunity cost of holding non-yielding bullion.

Geopolitical tensions: The ongoing conflict between Israel and Hezbollah has increased the demand for gold as a safe-haven asset. Recent airstrikes and rising casualties have increased market uncertainty, attracting investors to gold to avoid geopolitical risks.

Seasonal demand in India: Despite the ongoing Shraadh period, which usually dampens gold demand, the festive season is approaching. Industry experts are optimistic about the future of gold.

Colin Shah, MD of Kama Jewellery, estimates that global gold prices could reach $3,000 an ounce in the medium to long term. He attributes the current rally to positive global cues and expects further interest rate cuts from the US Fed.

In the Indian market, he expects gold prices to cross ₹78,000 per 10 gram during the festive season. Renisha Chainani, head of research at Augmont, agrees with the same sentiment. She says geopolitical concerns and US economic conditions will provide support to gold prices.

The upcoming Federal Open Market Committee (FOMC) meetings and economic data releases will be important in determining the market direction. She says price rise may continue in India.

Should one invest now?

Given the current environment, many experts suggest that now may be a prudent time to invest in gold. The combination of the Fed’s accommodative policies, rising geopolitical tensions, and seasonal demand could lead to further price increases.

Investors should consider gold as a hedge against potential market volatility and take advantage of the current bullish trend.

Australia’s CEO Peter McGuire said gold could reach $2,700 an ounce by the end of September and $3,000 an ounce by the end of 2024. In an interview, he said that if China gives incentives as promised, the prices of the metal could rise significantly.