Gold prices are expected to continue their upward trajectory in 2024, with experts predicting that they could reach Rs 70,000 per 10 grams in the domestic market. This increase is attributed to factors such as a stable rupee, geopolitical uncertainties, and slowing global economic growth. Currently, the price of the yellow metal is hovering at Rs 63,060 per 10 grams on the commodity stock exchange MCX and around USD 2,058 an ounce in the international market.
Global tensions in the Middle East and an expected end to the rate hike cycle have significantly impacted gold prices. Despite volatility throughout the year, gold reached new highs both domestically and internationally. As a result, experts believe that gold prices could eventually rise to USD 2,400 in 2024.
The Indian election and potential weakening of the rupee due to Foreign Institutional Investors (FIIs) lightening up their portfolios are expected to further bolster domestic gold prices. Meanwhile, retail jewelry buying in India and China may face challenges due to the higher domestic gold prices. At the same time, central banks’ demand for gold is anticipated to exceed last year’s record if current momentum continues.
The All India Gem and Jewellery Domestic Council (GJC) and the Gem Jewellery Export Promotion Council (GJEPC) are also cautiously optimistic about the outlook for 2024, citing geopolitical tensions, the weak rupee, and increasing gold prices as potential challenges for the industry.
In light of these developments, it is important for investors and industry professionals to closely monitor the trajectory of gold prices, which is largely dependent on the dollar index and geopolitical situation in the coming year. In the face of global economic uncertainties, gold is expected to maintain its appeal as a safe haven and hedge against inflation.
The market for gold is expected to remain dynamic in 2024, influenced by a multitude of economic and geopolitical factors. Additionally, the trend of central banks’ buying of gold and record high domestic prices continue to shape the industry landscape. As a result, stakeholders in the gold industry are advised to stay informed and vigilant in the coming year.
