NEW DELHI: Gold prices hit a record-high level on Monday, touching Rs 71,080 for 10 grams in India. The spot gold was at $2,343.89 per ounce amid weakening dollar, speculative buying and geopolitical tensions in the Middle East.
“Factors like the weakening dollar, accumulation of gold by central banks, elections in the US, geopolitical tensions in the Middle East and Russia-Ukraine crisis are driving this surge,” said Jigar Trivedi, senior analyst with Reliance Securities. According to him, the gold prices may reach Rs 76,000 per 10 gram by December this year.
“The uncertainty surrounding the Federal Reserve is making gold more appealing. This makes holding gold cheaper compared to other investments,” Trivedi added.
The experts say gold prices will keep going up but may see correction soon.
According to Ajay Kedia, director, of Kedia Advisory, the gold prices may touch Rs 73,000 per 10 gram around Diwali festival this year and silver may touch Rs 95,000 per one kg.
“In last 40 days, market has rallied very sharply. Technically, market is in overbought zone and traders are not ready to take long position at current level for gold,” Kedia stated.
“We see some corrective pullback in gold prices from current levels keeping intact long-term bullishness. A pullback of $50/$60 can’t be ruled out, which means Rs 68,000 on the domestic market,” added Kedia. As per him, silver seems a better investment with industrial consumption increasing. “If someone has missed the gold rally, then silver is still looking attractive,” he further said.
Experts say gold acts as a hedge against inflation and helps diversify portfolios, providing stability when other assets underperform. They say it’s essential for investors to evaluate their portfolios and allocate a portion to gold, typically around 10% or less.