Continuing to glitter in 2024 as well, gold price is likely to touch Rs 70,000 per 10 grams in the domestic market on the back of a stable rupee, geopolitical uncertainties and slowing global economic growth, according to analysts.

The yellow metal price is hovering at Rs 63,060 per 10 grams on the commodity stock exchange MCX and around $2,058 an ounce in the international market at a time the rupee is trading above 83 against the dollar.

In early December, prices skyrocketed on global tensions in West Asia, and emerging market participants anticipated that the rate hike cycle had more or less ended.

In a reflection of its safe-haven appeal, gold touched an all-time high of Rs 64,063 per 10 grams and $2,140 an ounce on December 4.

“We expect an eventual rise to $ 2,400 in 2024, and if the rupee is to be stable, gold is likely to reach around Rs 70,000 levels. As India faces elections, the rupee could weaken as foreign institutional investors (FIIs) are expected to lighten up their portfolios, which could further bolster domestic gold prices,”
Commtrendz research director Gnanasekar Thiagarajan said.

Kotak Securities vice-president, head commodity research Ravindra Rao, said retail jewellery buying might face headwinds from higher domestic prices in India and China while central banks’ demand might exceed last year’s record if the current momentum continues.

Rao noted that robust central bank buying alongside solid bar and coin demand helped gold prices amid surging bond yields and a strong dollar throughout the year, as the US Federal Reserve raised the interest rates to a 22-year high.

“The central banks’ buying has turned out to be a major demand driver for physical gold since the last few quarters.

“Record high domestic prices and uneven monsoon weighed on Indian jewellery consumption while the Chinese economic downturn led to an increase in the jewellery demand from the top consumer nation,” he said.

PTI