Gold prices are expected to continue their upward climb and reach ₹70,000 per 10 grammes in 2024, according to experts. The current price for 10 gms of 22 carat and 24 carat gold is ₹58,550 and ₹63,870, respectively. This rise in gold prices is attributed to tensions in the Middle East, and experts believe that the price is likely to continue increasing.
In May 2023, gold prices hit a new high of ₹61,845 per 10 gms and $2,083 an ounce in global markets. Six months later, the price reached a record high of ₹61,914. Experts predict that gold prices will continue to rise, possibly reaching $2,400 in the new year. If the rupee remains stable, gold prices could hit the ₹70,000 mark.
Indian political events, such as the general elections, could impact the value of the rupee, likely resulting in higher prices for gold. Additionally, the weak rupee due to geopolitical tensions and a potential US Fed rate cut could further contribute to a surge in gold prices in 2024.
The rise in gold prices is also influenced by RBI buying and demand for gold bars and coins, amid increasing bond yields and a strong US dollar throughout 2023. While domestic rates and an uneven monsoon have weighed on Indian jewellery consumption, the Chinese economic downturn has led to an increase in jewellery demand.
As we look towards 2024, experts anticipate that gold prices could touch $2,250-2,300 and ₹68,000-70,000. However, these high prices are expected to negatively impact sales in the upcoming year. This means that the jewellery business is likely to remain at the same level as 2023, with retail purchases facing headwinds from higher domestic prices in India and China.
