After a brief decline following the reduction of the import duty of gold in the Union budget for FY25, gold prices are marching north for quite a few weeks and has reached new peaks of Rs 76,000 for 10 grams on MCX in early trades on September 25.
On September 24, the prices in the spot market rose to Rs 74,800 for pre gold bar of 10 grams. The moot question the rise has triggered is whether the price of the precious metal will hit the Rs 80,000 mark by the end of this year?
Gold price: Rs 80000 looks possible – Experts
Joydeep Sircar, director of a century-old jeweller in Kolkata, B Sircar Johuree, said that it appears possible. He has also pointed out that the uncertainties arising out of the US presidential election in early November is another factor that could add to the upward push to the price this year. Other experts, too, told the media that the Rs 80,000 level looks possible at this point.
Goldman Sachs has made a forecast that in the global markets the price will touch $2,700 per troy ounce (1 troy onuce = 28.3495 grams) by early 2025. Federal Reserve interest rate cut and tat by central banks in emerging economies are seen as the triggers.
Prices in different Indian cities
The website of India Bullion and Jewelers Association, the apex body in the industry, has mentioned the following rates of gold (24 carats, 10 grams) in different cities of India on September 25.
These are Mumbai Rs 76,370, Delhi, Gurugram, Chandigarh, Lucknow, Noida, Ghaziabad Rs 76,520, Kolkata Rs 76,370, Chennai Rs 76,370, Ahmedabad Rs 76,420, Jaipur Rs 76,520 and Patna Rs 76,420.
Prices of gold are rising both in the Indian and international markets. Agencies reported that weak economic data in US, the largest economy in the world, pushed gold prices up in excess of 1%. Not only gold, this data was also thought to be behind the price of silver that rose to record prices in the past four months.
Usual price triggers
Prices of gold usually goes up during periods of uncertainties and weakness in the US dollar. It is a traditional favourite of investors who want to find an effective hedge against inflation.
In India, higher demand during the festive season that kicks off in October and the following marriage season in December-January period are also expected to fuel the demand for the metal raising prices.
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