Mumbai: after gold prices rallied for one six month high In International marketAnalysts are seeing a similar rise in its price yellow metal here at home.
On Tuesday, gold was trading nearly 1% higher at $2,028 an ounce on the New York Commodity Exchange as US government bond yields showed a falling trend and the dollar also weakened against most major currencies.
However, in the domestic market, prices of the yellow metal did not rise much and were trading in the range of Rs 61,100 to Rs 61,200 per 10 grams – barely unchanged from its levels at the end of last week. It is now closing at its all-time high of Rs 61,500 recorded in mid-2023. Gold has maintained its resilience amid rising global interest rates, inflationary pressures following Covid recovery, support from central bank purchases and increased risk appetite. Premium due to geopolitical concerns, said Kishor Narne, director, commodity and currency, Motilal Oswal Financial Services.
“With the end of policy tightening by the US Federal Reserve approaching, markets are considering potential rate cuts in the coming year. We expect further momentum for gold, potentially reaching an all-time high past $2,075. “Will exceed the high and reach new highs, possibly around $2,200 by the end of 2024.”
Market participants say apart from international factors, rupee weakness and wedding season could push gold prices higher.
However, there is another view within the Indian jewelery industry, which believes that the rally in the international market may be limited in the coming months unless there is a major event that supports the price of this precious metal. Colin Shah, Founder and Managing Director, Cama Jewellery, said, “Since global investors are ignoring the uncertainties and inflation is also showing a downward trend, I think gold prices will remain in the range of $1,850-2,100. “
Shah believes that since the last two wars have not had any major impact on the price of crude oil and inflation is also coming under control, the price of gold will not rise further in the coming few months. “Unless there is a major event that supports an uptick in its price,” he said.
There are also industry players who think that more than gold, silver price may rise as industrial demand for this precious metal will be an additional factor for a progressive rise in its price.
On Tuesday, gold was trading nearly 1% higher at $2,028 an ounce on the New York Commodity Exchange as US government bond yields showed a falling trend and the dollar also weakened against most major currencies.
However, in the domestic market, prices of the yellow metal did not rise much and were trading in the range of Rs 61,100 to Rs 61,200 per 10 grams – barely unchanged from its levels at the end of last week. It is now closing at its all-time high of Rs 61,500 recorded in mid-2023. Gold has maintained its resilience amid rising global interest rates, inflationary pressures following Covid recovery, support from central bank purchases and increased risk appetite. Premium due to geopolitical concerns, said Kishor Narne, director, commodity and currency, Motilal Oswal Financial Services.
“With the end of policy tightening by the US Federal Reserve approaching, markets are considering potential rate cuts in the coming year. We expect further momentum for gold, potentially reaching an all-time high past $2,075. “Will exceed the high and reach new highs, possibly around $2,200 by the end of 2024.”
Market participants say apart from international factors, rupee weakness and wedding season could push gold prices higher.
However, there is another view within the Indian jewelery industry, which believes that the rally in the international market may be limited in the coming months unless there is a major event that supports the price of this precious metal. Colin Shah, Founder and Managing Director, Cama Jewellery, said, “Since global investors are ignoring the uncertainties and inflation is also showing a downward trend, I think gold prices will remain in the range of $1,850-2,100. “
Shah believes that since the last two wars have not had any major impact on the price of crude oil and inflation is also coming under control, the price of gold will not rise further in the coming few months. “Unless there is a major event that supports an uptick in its price,” he said.
There are also industry players who think that more than gold, silver price may rise as industrial demand for this precious metal will be an additional factor for a progressive rise in its price.
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