Gold prices poised to hit Rs. 70,000 in 2024

In 2023, gold experienced a consistent upward trend, closing the year with a 12% increase. Analysts suggest that the ongoing geopolitical crises contribute to the vulnerability of risk assets like gold, warranting the embedding of a structural risk premium in gold prices.

Investment experts recommend considering gold as a valuable asset for the year 2024. The anticipation of fluctuating interest rates and the uncertain timing and extent of rate cuts may create market speculation, leading to volatility across various asset markets, including gold.

Ghazal Jain, Fund Manager of Alternative Investments at Quantum AMC, advises investors to capitalize on short-lived swings in gold prices amid oscillations between market optimism and pessimism. The note also highlights the potential benefits of strategic gold allocation, especially as the Federal Reserve’s policy is expected to undergo a shift at some point in the coming year.

Commtrendz Research Director Gnanasekar Thiagarajan forecasts gold to rise to $2,400 in 2024, with the possibility of reaching Rs 70,000 levels if the rupee remains stable. The report suggests that the upcoming elections in India could lead to a weakened rupee as Foreign Institutional Investors (FIIs) may adjust their portfolios, further supporting domestic gold prices.

Emkay Wealth Management’s report titled ‘Navigator’ projects gold prices testing levels from $2060 to $2090, with the potential to target $2115 in the current upward movement.