Gold Prices in India: A Stable Haven Above Rs 1,20,000
Gold prices today were trading at a stable level above the Rs 1,20,000 mark, amid the festive season. Gold price today stands at Rs 1,20,440 according to the India Bullion Co. The previous high that the yellow metal hit was on Sept. 23, when the price rose to Rs 1,18,200 on Oct. 5.
Gold had crossed the Rs 1,10,000 mark on Sept. 15, and the possible rate cut from the Fed had driven the rally. Renewed concerns over the US government shutdown have reinforced safe-haven demand, keeping precious metals well-supported. The shutdown has increased economic uncertainty and increased the bets of the interest rate cut in this year. Investors are now relying on private data for crucial clues about an already murky US economic outlook.
Factors Driving the Gold Price Rally
Gold has surged almost 50% this year, spurred by the massive jolt of economic and geopolitical uncertainty that President Donald Trump has brought to the market. The Federal Reserve’s rate-cutting cycle and central bank purchases to diversify away from dollar assets have also been major tailwinds. Gold price forecast remains positive for the longer term, driven by these factors.
According to Anuj Gupta, a market and commodities expert, “As the labour market and inflation are still a cause of concern for the Fed, they want to keep an eye on the data. The trend of gold is looking positive for the longer term.” In the very near term, there might be some profit booking as the event passes off.
Gold Prices in Major Indian Cities
In New Delhi, the price stood at Rs 1,20,010 per 10 gm, and in Mumbai, it stood at Rs 1,20,220 on Tuesday. In Bengaluru, the rate stood at Rs 1,20,310, while in Kolkata, it was Rs 1,20,060 per 10 gm. The price of the precious commodity was the highest in Chennai, trading at Rs 1,20,570 per 10 gm.
The Dec. 5 futures stood at Rs 1,20,325 according to the Multi-Commodity Exchange. The spot prices of the yellow metal rose to $3,958 on Tuesday, according to the World Gold Council. On July. 10, the global price of the yellow metal hit a record high of $3,977, according to Bloomberg data.
For investors looking to invest in gold, it’s essential to understand the gold investment options available in the market. From gold ETFs to physical gold, there are various ways to invest in gold, each with its benefits and drawbacks.
Conclusion
In conclusion, gold prices in India are expected to remain stable above the Rs 1,20,000 mark, driven by festive season demand and global economic uncertainty. Investors should keep a close eye on the gold price trends and adjust their investment strategies accordingly. With the right investment strategy, investors can make the most of the gold price rally and achieve their investment goals.
