In India, the price of 24-carat gold touched ₹77,390 per 10 grams.
Global trends supporting prices
In global markets, gold’s appeal has strengthened due to easing US Treasury yields. The 10-year Treasury yield declined for the third consecutive session, making zero-yield assets like gold more attractive.
This drop in yields is driven by expectations of future interest rate cuts by the US Federal Reserve.
According to ANZ commodity strategist Soni Kumari, “US monetary policy easing is the game changer for gold prices, as it sets the stage for increased investment demand.”
In addition to monetary factors, geopolitical uncertainties, including ongoing Middle East tensions, have heightened the demand for safe-haven assets like gold.
“Safe-haven flows are being drawn to gold due to risk-off sentiment amidst geopolitical threats,” said Renisha Chainani, Head of Research at Augmont – Gold for All.
Festive boost in India
India, the second-largest consumer of gold globally,
is witnessing strong demand ahead of Diwali and Dhanteras.
Colin Shah, MD of Kama Jewelry, noted that gold prices are expected to rise even further due to robust demand from jewelers and traders.
“We anticipate a 10-15% year-on-year increase in demand this festive season,” said Shah.
He stressed the strong consumer appetite compared to last year.
He predicted that gold could hit new highs as demand intensifies.
The outlook
Experts attending the London Bullion Market Association’s annual conference forecast that gold could reach $2,941 per ounce over the next 12 months.
Renisha Chainani predicts gold could rise towards ₹78,500 per 10 grams if global trends remain supportive.
For investors, gold remains a safe bet, with festive demand and global uncertainties both pushing prices higher.
As the year progresses, all eyes will be on the us. Federal Reserve and the outcome of global geopolitical events to determine the next move for gold prices.
–With agencies inputs