Gold Price Hike: Buying gold or gold jewellery during the festive season can be heavy on the pocket. Gold prices are likely to rise sharply in the coming days. Brokerage house Motilal Oswal Financial Services, in its report, advised investors to buy gold on every dip and said that gold prices in the domestic market can go up to the level of Rs 76,000 per 10 grams.
Gold can go up to 76000
Motilal Oswal Financial Services Limited said that its stance on gold is to buy. According to the brokerage house, the price is getting support at Rs 69,500 per 10 grams and the target is for the price of gold to go up to Rs 76000 in the domestic market. The price of gold on Comex has strong support at $ 2430 an ounce and the price is expected to go up to $ 2650 an ounce. In its report, the brokerage house said, in 2024, there has been a lot of volatility in prices due to global tensions, economic uncertainty and monetary policy, despite this the gold market remains dynamic. Due to reduction in interest rates, global tensions, the price of gold may remain bullish.
Demand increased due to global tension
Gold reached an all-time high in early 2024 due to a sharp jump in prices as investors were looking for safe investment options. This rise in prices came due to tensions in Ukraine and the Middle East, which is constantly worrying investors. Whenever global tensions are seen, traditionally gold prices have seen a rise and this situation will remain the same in the future. There is a presidential election in the US this year. Due to this, the volatility in gold prices is likely to remain due to uncertainty.
Central banks continue to buy
According to Motilal Oswal’s report, gold prices have come under pressure due to a 9 per cent cut in gold import duty in India, unwinding of yen carry trade and profit booking. Market dynamics remain very complex, the performance of gold is also linked to fluctuations in the dollar index, US Treasury yields and global monetary policy. Motilal Oswal Financial Services Group Senior Vice President, Commodity Research, Navneet Damani said, the pace of gold purchases by the central bank has slowed down in the second quarter of the current year and has declined by 39 per cent quarter-on-quarter to 183 tonnes. Despite the decline in purchases, the average quarterly purchase of the last five years is more than 179 tonnes, which indicates that purchases by central banks are continuing.
Decreasing interest rates will increase the shine of gold
According to Navneet Damani, the expected reduction in interest rates in the monetary policy will further increase the shine of gold. The future outlook of gold is also linked to the purchases by central banks. Due to the reduction in import duty and investor-friendly economic policies, the demand for gold remains strong in the domestic markets of major countries like India. Gold prices may remain bullish due to reduction in interest rates, global tensions and black swan events.
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