Gold's pricing is witnessing a whirlwind of excitement, reaching approximately 74,000 rupees in India. With the onset of wedding season amidst global events, gold prices are ascending to new heights with little sign of easing. Yes, according to a Citigroup report, gold prices are poised for an upswing and may witness a 25% increase.
Gold to Possibly Reach $3000 per Ounce
According to The Wall Street Journal, research firm Citi has forecasted that the international price of gold (Gold Rate) could reach $3000 per ounce, with the precious metal's swift momentum observable between a six to eighteen month timeframe. Clearly, there's no immediate relief in sight for gold prices, as indicated by Citi.
The Gold Connection to US Fed Decisions
On Tuesday, the international market showcased a remarkable rise in future gold prices, trading at 2371.40 dollars per ounce. Reviews suggest that over the past 19 days, gold prices have risen on 16 occasions, showcasing a 15% spike. Moreover, the Citi report projects a potential surge in Gold Price up to 25% within the next 6-18 months, expected to cross $2500 per ounce by the second half of 2024. Citi suggests that the US Federal Reserve's rate cuts and treasury rallies could shoot gold to $3000 per ounce.
Geopolitical Tensions Lend Support
Despite increasing interest rates and a robust dollar, Gold is racing ahead like a rocket. Analysts decided by Citi state that gold prices benefited from geopolitical tensions. Should these conditions persist, there could be even greater velocity ahead for gold prices. Yet, bullion prices might face a decline come May or June, but gold prices could hover around $2200 per ounce.
Gold: The Safe Haven Investment
Gold is not only treasured as jewelry but also regarded as a solid investment option. When global tensions mount or geopolitical issues escalate, investors rush towards gold. Particularly in India, gold prices have spiked by 16% over the past three months amidst the Iran-Israel conflict leading to even higher prices. Currently, Gold Price is nearing 74,000 rupees. A similar situation occurred during the onset of the Russia-Ukraine and Israel-Hamas conflicts.
Gold Prices in India Leap 16% in Three Months
According to a Business Today report, there's a surge in Gold Inflation with a 16% rise over the past three months, predominantly in the last one and a half months. With the recent Iran-Israel conflict shaping geopolitical circumstances, gold is reaching new peaks.
Colin Shah, MD at Kama Jewelry, says that gold price volatility will remain high due to increasing tensions between conflicting nations. He adds that analysts expect further climbs for gold prices as investors continue to value gold as a secure investment.
