Tuesday, May 21, 2024

Anticipating a Glittering Future: Gold Prices May Soar to Rs 70,000 This Year

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Gold May Touch the Rs 70,000 Mark This Year

In the dynamic world of commodities, gold continues to glitter, making significant strides in its value. Analysts, bullion dealers, and jewelers are closely monitoring the uptick, anticipating that the prices, which have already seen a notable high of Rs 64,500 per 10 grams, may surge to an unprecedented Rs 70,000 mark in the near future.

The factors fuelling this bullish outlook are multifaceted. From the Federal Reserve’s hawkish stance to unceasing geopolitical tensions and speculative buying, each element plays a critical role in driving the prices upward. The allure of gold as a safe investment haven is attracting more investors, contributing to its rising demand and value.

Prithviraj Kothari, a leading voice in the bullion market, highlights the current surge in gold prices as a response to a mix of international and domestic factors. According to Kothari, “Gold has reached an all-time high price domestically, propelled by a combination of the Federal Reserve’s posture, geopolitical unease, and a robust demand for speculative and investment purchases.” He forecasts that the immediate future looks promising for gold, with prices expected to reach as high as $2150, roughly translating to Rs 65,500, in the short term. The long-term prognosis remains exceptionally bullish, with targets set around the $2300 or Rs 70,000 mark by 2024.

Other industry insiders share this optimistic view. Colin Shah, who has a keen eye on market trends, observes that gold’s performance has not only sustained its momentum but has also surged, especially in the recent weeks, spurred by global economic events and the adjustments in the US Fed rates. “The price trajectory is set to break new grounds, potentially crossing the Rs 70,000 milestone within the year,” Shah prognosticates. He also mentions potential rate adjustments by the US Fed aiming to reduce to a 4 percent bracket, which could further strengthen gold prices amidst global economic shifts and consumption demands.

Domestically, the demand for gold shows no sign of waning. A significant portion of the Indian populace views gold not just as a precious metal but as a viable investment avenue, contributing to its robust demand. This sentiment is echoed by Ravindra Rao from Kotak Securities, who has been closely following Comex Gold prices. Rao points out that Comex Gold prices are hovering near their record highs, influenced by weak US economic indicators that fuel speculation of impending rate cuts by the Federal Reserve. “Market observers are now keenly awaiting further data and Federal Reserve’s Powell’s testimony for more clues on the direction of US monetary policy,” Rao adds.

As the anticipation builds, the trajectory of gold prices is a subject of widespread speculation and interest. The consensus among experts suggests a bullish run, spurred by global economic uncertainties, policy adjustments, and an undying demand for the precious metal. Whether gold will indeed touch the Rs 70,000 mark remains to be seen, but the journey there promises to be as intriguing as the outcome.

Jordan Clark
Jordan Clarkhttps://www.businessorbital.com/
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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