Gold Price in India Trends and Prediction (October 2023): The retail price of pure 24-carat gold has jumped around Rs 2500 per 10 grams in the last 10 days. At the time of writing today, 24-carat Gold was selling at around Rs 60,490 per 10 grams in Mumbai as against Rs 57,980 on October 9, 2023.
On Wednesday, the COMEX Gold prices surged almost 1.7% amid robust safe haven bids owing to heightened geo-political tensions in West Asia.
Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd, says the surge came despite a rally in the dollar index and treasury yields. “The yield on the 10-year notes rose above 4.9%, reaching a new 16-year high as robust economic data strengthened expectations that the Federal Reserve will maintain restrictive interest rates for an extended period.”
Check: Gold rate today in your city
There have been several factors contributing to a surge in gold prices. According to Veer Mishra, Co-Founder of Plus, some of these factors are the following:
- Increased demand: The demand for gold and silver has increased in recent months, due to a number of factors, including the ongoing COVID-19 pandemic, the ongoing war in Ukraine, and the high inflation rate in India.
- Weaker rupee: The Indian rupee has weakened against the US dollar in recent months, which has made gold and silver more expensive for domestic consumers.
- Festive season demand: The upcoming festive season in India is a time when demand for gold and silver typically increases. This is because many people in India buy gold and silver jewellery as gifts during the festive season.
Prithviraj Kothari, MD and CEO of RiddiSiddhi Bullions Limited says Gold and Silver prices rocketed 4% and 5% respectively last week and showed a stellar performance as escalating geopolitical tensions improved safe-heaven demand.
“Because of escalating Israel-Hamas tensions and increased anticipation that the Fed would not raise interest rates further this year, precious metals had their best week in seven months,” says Kothari.
Should you buy Gold before Diwali, Dhanteras?
Experts say it may be a good time to buy Gold ahead of Diwali and Dhanteras festivals this year. However, one should factor in his/her risk appetite as Gold prices are expected to remain volatile over the next few months.
Mishra says it is important to note that the price of gold and silver is volatile and can fluctuate significantly from day to day. Therefore, investors should carefully consider their own risk tolerance and investment goals before investing in gold and silver.
According to Kothari, the next resistance for Gold is $1965 (Rs 60,000) but prices need to sustain above this level to continue the current bull run.
“While Silver has formed a bullish reversal pattern on weekly charts. It seems the bottom has been made for the short term and the rally is expected to continue towards $24 (Rs 73500). As the auspicious period of Navratri has started, it is the best time to buy precious metals,” says Kothari.
Disclaimer: The views and suggestions expressed above are those of respective experts/commentators. They do not reflect the views of FinancialExpress.Com. Please consult your financial advisor before investing in Gold or any other asset.