Gold Prices Eye Rs 70,000 Mark; Mumbai,Delhi, Kerala, Chennai, Other Cities; What To Expect In FY25?

After hitting a fresh record-high, gold prices across major cities of India witnessed a slight correction on Saturday, March 30, 2023. Despite this, gold prices stayed and flirted around the Rs 70,000 mark in some metro cities. Also, year-to-date, both 22-carat and 24-carat in 10 grams have jumped by around 7% each. Gold prices were overall up in FY24, and the trend is expected to continue in FY25.

Gold Prices In India, March 30, 2024:

Yellow metal in 24 carats dipped by Rs 28 to Rs 2,800 across grams. The 10-gram 24-carat was down by Rs 280 to Rs 68,450 compared to the all-time high level of Rs 68,730 on the previous day.

Meanwhile, in 22-carat, gold prices were down by Rs 25 to Rs 2,500 on March 30. 10-gram of yellow metal here slipped by Rs 250 to Rs 62,750, pulling back from its Rs 63,000 mark of yesterday.

Additionally, in the case of 18-carat, prices of pristine metal dipped by Rs 20 to Rs 2,000. 10-gram in this carat dived by Rs 200 to Rs 51,340 compared to the record high level of Rs 51,540.

On the previous day, the 22-carat of 10 grams surged by Rs 1,300, while the 24-carat was up by Rs 1,420, and the 18-carat of 10 grams surged by Rs 1,060. Gold prices were up tracking international prices as spot gold reached near its lifetime high.

MCX gold prices with the expiry of April 2024 surged by Rs 123 to Rs 67,800 in 10 grams, while yellow metal in the expiry of June 2024 was marginally up to Rs 67,725 in 10 grams on March 28. Trading in MCX is closed from March 29 to 30th due to the long weekend including the Good Friday holiday.

In the international market, spot gold stood near its all-time high of $2,235.90 an ounce. On March 28, spot gold ended at $2,233.10 an ounce.

Gold Prices In Cities, March 30, 2024:

In cities like Mumbai, Kolkata, Bangalore, Hyderabad, Kerala, and Pune, 24-carat of 10 grams was priced a Rs 68,450, 22-carat at Rs 62,750, and 18-carat at Rs 51,340 on March 30.

Furthermore, in cities like Delhi, gold price was at Rs 68,600 in 24-carat, at Rs 62,900 for 22-carat, and Rs 51,460 for 18-carat. In cities like Vadodara and Ahmedabad, gold prices were at Rs 68,500 in 24-carat, Rs 51,380 at 18-carat, and Rs 62,800 in 22-carat.

The cities in which gold prices reached closest to the Rs 70,000 mark are -- Chennai, Coimbatore, Madurai, Salem, Trichy, Vellore, Tirupur, Tirunelveli, Thanjavur, and Pondicherry among others. On March 30, 24-carat of gold in these cities was at Rs 69,490, while 22-carat and 18-carat were at Rs 63,700 and Rs 52,180 respectively. On the previous day, these cities saw the shiny yellow metal skyrocket to their historic level of Rs 69,710 in 24-carat 10 grams.

What To Expect Ahead?

YTD, 24-carat gold is up by 7.2%. A similar upside is seen in 22-carat as well. In six months, gold is up by17.6% as of now. Further, in FY24, the price is up by 14%.

According to Prabhudas Lilladher, this uptrend is attributed on hopes of interest rate cuts by US FED and higher buying by central banks as a safe haven amidst global uncertainty. Given expected rate cuts and geopolitical uncertainty, Gold prices are expected to inch up further.

Data from Trading Economics revealed that the Federal Reserve left the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, in line with market expectations. Policymakers still plan to cut interest rates three times this year, similar to the quarterly forecasts in December. The plot also indicated three cuts in 2025, one fewer than in December, and three more reductions in 2026.

A rate cut scenario is good for non-yeilding assets like gold, which accordingly, hints for more upside.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.