Gold Price Forecast (September 2023): 24k gold jumps by 100 rupees in 10 days. Should you buy during festivals?
The price of gold today in major cities is around 6016 rupees – 6047 rupees per gram of 24 karat and 5515 rupees – 5545 rupees per gram of 22 karat.
In the last ten days till September 5, the prices of 10 grams of 24k and 22k gold have risen by about Rs 100. (See the latest and latest 10-day gold prices here.)
With the festival season approaching, many potential buyers are wondering if gold prices are expected to drop or if they should buy the yellow metal during the upcoming festivals.
According to Mahendra Lonya, Chairman of Vighnaharta Gold Ltd, gold prices may see some decline in the international market but may remain stable in the Indian market due to strong domestic demand.
“Uncertainties around the world are there but they haven’t developed much recently. Hence, international gold prices are expected to decline somewhat, but domestic prices are expected to remain stable in the short term due to strong domestic demand,” Lunya told FE Money.
Moreover, concerns about inflation are here to stay in the domestic market as the festive season will continue to give them a boost.
“So looking at such situations it seems like buying gold is a good thing because it will continue to act as a hedge against inflation,” says Lonia.
Also read: Buying gold in the name of the wife: will you have to pay tax on the income from selling it in the future?
For a long-term investment, Lonia believes current levels are a good entry point and investors looking to invest in gold should move forward at current levels and start accumulating gold to diversify their investment portfolios.
However, he warns that there may be a small price correction but it would be a point to accumulate more.
What the WGC expects
In its latest commentary on the gold market, the World Gold Council (WGC) noted that gold rose 3.1% in July to $1971, bringing its year-to-date price up 8.7%.
The report noted that August has been a good month for gold returns over the past two decades, “probably driven by seasonally weak bond yields and consumer sentiment, the expectation of seasonal volatility for equities in September and some gold restockings in India and China.”
Read also: Gold price: MCX gold declines marginally; Support is at Rs 59,020-58,840, resistance is at Rs 59,450-59,610.
The World Gold Council did not expect these factors to be supportive in the past in August 2023, with “returns pressured upwards, stocks trending higher, and demand recovery conditions weak 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 boost investor interest in gold,” the WGC report said.
Disclaimer: The above opinions and suggestions are those of the respective experts/commenters. They do not reflect the opinions of Financialexpress.com. Please consult your financial advisor before investing.
(tags for translation)Gold price forecast (R)Gold price forecast (R)Gold price news (R)Gold price today (R)Gold price news today