On November 10, gold prices saw some reprieve as it traded over the Rs 60,000 per 10 gramme mark on the Multi Commodity Exchange. The spot price of gold is currently hovering around $11,958 per ounce.
According to Deveya Gaglani, Research Analyst at Commodities, Axis Securities, gold has touched a multi-month high on the basis of increased demand for a safe-haven asset.
"Geopolitical tension in the Middle East boosted gold prices as it gained almost 10 percent from the recent lows and made a multi-month high of Rs 61,500 level as investors flocked towards Gold due to its safe-haven appeal," Gaglani said in a statement.
According to commodity market analysts, the price of the precious metal declined this week due to an increase in the US dollar index. According to them, the US dollar index has risen by 0.80 percent this week after falling by 1.40 percent the previous week. The increase is being ascribed to a change in US dollar rates following the declaration by the US Fed chair to focus on inflation following the Federal Open Market Committee meeting.
In response to whether it is a good idea to invest in gold considering current variables such as the US election and the Middle East war, the analyst stated that any dip around the '57,000-58,000 mark' can be exploited as a purchasing opportunity.
"With the US election coming up in 2024 and the global geopolitical situation, the sky-high interest will not last long." The Fed will eventually begin to lower interest rates, bolstering gold prices. "Any dips around 57,000-58,000 can be used by investors as a buying opportunity during this Diwali season," Gaglani said.
According to Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart Ltd., gold prices may rise to Rs 64,000 to Rs 66,000 per ten grammes in 2024. "In 2024, we expect gold prices to rise to $2250 on the Comex division, while prices on the MCX may rise to $64,000 to $66000 per ten grammes." "Gold prices have critical support at 56,000," said Yadav. According to Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart Ltd., gold prices may rise to Rs 64,000 to Rs 66,000 per ten grammes in 2024. Any drop to the Rs 57,000 - Rs 58,000 area, on the other hand, may be a nice 'buy' opportunity.
