Hyderabad: Gold prices which have already touched a high of Rs 64,500 per 10 gm may go up to Rs 70,000 per 10 gm, according to bullion dealers, jewellers and analysts. Federal Reserve’s hawkish stance, and unending geopolitical tension coupled with speculative buying are driving the prices upwards.
Prithviraj Kothari, managing director of RiddiSiddhi Bullions Limited (RSBL) said, "Gold is trading at an all-time high price domestically. Gold prices have advanced nearly $70 in the last two trading days, breaking the range of $2000 to $2060, it traded in January and February. Prices got a boost from New York Community Bancorp (NYCB) shares collapsing last week, triggering the speculation of Banking crisis 2.0 in the US."
"This week we are seeing follow-through buying and investors jumping into the gold market with the fear of missing out (FOMO) syndrome. Fed’s hawkish stance, continued geopolitical tensions, and strong speculative and investment demand are the other factors supporting prices. Due to rupee depreciation, gold prices have touched record high prices in India. Prices are expected to continue their bullish momentum till $2150 (Rs 65500) in the short term. The long-term bullish view is still intact with a target of $2300 (Rs 70000) in 2024,” Kothari added.
Colin Shah, managing director of Kama Jewelry said the performance of yellow metal has shown a sustained momentum in February, along with a surge witnessed in the last week of the month, owing to the global influence of the US Fed rates.
"The gradual progression in gold prices is building the steam for the prices to scale new highs, probably to cross the Rs 70,000 mark down the year. While there are talks of rate cuts by the US Fed in the near future with the larger goal of bringing the rate down to the 4 per cent bracket by the end of this year, we foresee gold prices to continue strengthening in the backdrop of global economic events and consumption demands," Shah said.
Domestically too, the higher consumption rate along with a considerable size of population considering gold as an investment asset class, the prices will be overshadowed by the strong demand.
Ravindra Rao, Head of Commodity Research at Kotak Securities added "Comex Gold prices saw the highest daily close on Monday and are trading near the record high of $2,152.3 per troy ounce notched in December 2023, as weak US economic data last week improved the conviction that the Federal Reserve might start cutting rates in next the coming months. Recently, Fed Governor Waller said he favoured a shift in the Fed’s holdings toward a larger share of short-term treasuries. Markets now focus on US ISM Services, Jobs data and Powell’s testimony for more cues on Fed policy path.”
