Gold Price Forecast: 24-carat Gold rate jumps Rs 100 in 10 days. Should you buy during festivals?

The Gold rate today in major cities is around Rs 6016-Rs 6047 per gram for 24-carat and Rs 5515-Rs 5545 per gram for 22-carat.

In the last 10 days till September 5, the prices of 10 grams of 24-carat and 22-carat gold increased by around Rs 100. (Check the latest and last 10-day Gold prices here).

With the festival season approaching, many prospective buyers are wondering whether the gold prices are expected to decrease or if they should buy the yellow metal during upcoming festivals.

According to Mahendra Luniya, Chairman at Vighnaharta Gold Ltd, gold prices may see some decline in the international market but they may remain flat in the Indian market due to the strong domestic demand.

“The uncertainties around the globe are present but have not seen much development in recent times. Hence, the prices of gold internationally are expected to fall to some extent but the domestic prices are expected to remain flat over the short term due to the strong domestic demand, Luniya told FE Money.

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Further, inflation concerns are here to stay in the domestic market as the festive season will keep giving them a boost.

“Hence, looking at such situations gold seems a good buy because it will continue to act as a hedge against inflation,” says Luniya.

For long-term investment, Luniya thinks the current levels are a good entry point and investors looking to invest in gold should go ahead at the current levels and start accumulating gold to diversify their portfolio.

However, he warns that there can be a small correction in the prices but it will be a point to accumulate further.

What WGC expects

In its recent Gold Market Commentary, the World Gold Council (WGC) noted that gold gained 3.1% in July to $1971 bringing the y-t-d to 8.7%.

The report noted that August had been a good month for gold returns over the past two decades, “likely driven by seasonally weak bond yields and consumer sentiments, anticipation of seasonal equity volatility in September and some gold restocking in India and China.”

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The WGC didn’t expect these factors to be as supportive in the past in August 2023 with “ yields pressured higher, equities trending up and conditions for a demand pick-up poor in India and China.

“However, this does not diminish our view that over the next few months, economic concerns will continue to mount and asset volatility will rise with them – factors that should help underpin investor interest in gold,” WGC report said.

Disclaimer: Views and suggestions mentioned above are those of the respective experts/commentators. They do not reflect the views of financialexpress.com. Please consult your financial advisor before investing.