Gold Prices in India: A Post-Festive Season Analysis
Gold prices in India today were marginally lower at Rs 123,550, after the festive season. This compares to the Rs 1,24,530 levels on Friday. The dip in gold prices can be attributed to a combination of factors, including the end of the seasonal buying spree and a stronger dollar.
Global Market Trends
During the week, gold prices slid the most in 12 years after a weeks-long furious rally. A confluence of factors dragged down the precious metal, including positive trade talks between China and the US, overstretched technicals, and uncertainty on investor positioning due to the government shutdown.
However, gold prices rose globally on Thursday, following a two-day slump, as geopolitical uncertainties emerged following the US sanctions on Russian oil companies. On India’s Multi Commodity Exchange, gold futures for December delivery rose 2% to trade at Rs 124,250 per 10 gram.
Forecasts and Predictions
JP Morgan expects the bull run to stay intact, with the price predicted to reach an average $5,055 per ounce by the end of the fourth quarter of 2026. The forecast is based on the back of rising investor demand and central bank buying, which is expected to average at nearly 566 tons of the metal in a quarter of 2026.
According to Natasha Kaneva, Head of Global Commodities Strategy at JP Morgan, gold remains our highest conviction long for the year, and we see further upside as the market enters a Fed rate-cutting cycle.
Gold Prices in Major Cities
In New Delhi, the price stood at Rs 1,23,110 per 10 gm, and in Mumbai, it stood at Rs 123,320 on Saturday. In Bengaluru, the rate stood at Rs 1,23,420, while in Kolkata, it was Rs 1,23,160 per 10 gm.
The price of the precious commodity was the highest in Chennai, trading at Rs 1,23,680 per 10 gm. The Dec. 5 futures stood at Rs 1,23,255 according to the Multi-Commodity Exchange. The spot prices of the yellow metal rose to $4,114 on Saturday, according to the World Gold Council.
For investors looking to diversify their portfolio, commodity market investing can be a viable option. With the right strategy and knowledge, investors can navigate the market and make informed decisions.
Investor Sentiment and Market Outlook
The current market sentiment is cautious, with investors waiting for further cues from the global market. However, with the forecasted increase in demand and central bank buying, the outlook for gold prices remains positive.
Investors can stay ahead of the curve by staying informed about the latest market trends and forecasts. By following reputable sources and financial news in India, investors can make informed decisions and navigate the market with confidence.
Conclusion
In conclusion, gold prices in India have held steady post-festive season, with a marginal dip in prices. However, with the forecasted increase in demand and central bank buying, the outlook for gold prices remains positive. Investors can stay ahead of the curve by staying informed about the latest market trends and forecasts, and by diversifying their portfolio with gold investing.
