Gold prices could reach Rs 70,000 per 10 grams in 2024

India’s gold prices are likely to reach a price of Rs 70,000 for 10 grams in the domestic market this year. Industry experts believe that even further price increases are possible due to upcoming elections in India and geopolitical uncertainties as well as slowing global growth. 

“We expect an eventual rise to $2,400 in 2024 [for 10 grams of gold], and if the rupee is to be stable, gold is likely to reach around Rs 70,000 levels,” Commtrendz’s research director Gnanasekar Thiagarajan told the Press Trust of India. “As India faces election, the rupee could weaken as Foreign Institutional Investors are expected to lighten up their portfolios, which could further bolster domestic prices for gold.”
 
In India, gold prices rose sharply in December, 2023 as global tensions in the Middle East only increased. Although the rate hike cycle is coming to an end, the trend is expected to steadily move towards higher prices, ET Bureau reported. Gold reached a record high price of Rs 61,914 for 10 grams on November 16, 2023 but projected figures of Rs 70,000 would dwarf this total. 

While high gold prices could increase profits for businesses with a sizeable inventory, those needing to procure the raw material will face heftier upfront costs and may try to stave off stocking up. In the past, high gold prices have caused some to postpone weddings to wait for a more favourable time so retailers will be hoping for a balance in 2024.