Gold prices have experienced significant growth in recent months. The Indian Bullion Jewelers Association (IBJA) reported that on Tuesday, the price of 10 grams of 24-carat gold reached Rs 74,220, up from Rs 73,383 in the previous trading session on May 17.
“Gold may be able to sustain at higher levels only if the Fed cuts rates, and the US$ starts declining against currency majors,” stated a report by Emkay Wealth Management, a brokerage firm.
As of April 30, 2024, physical gold has achieved a compound annual growth rate (CAGR) of 19.42 percent over the past 12 months, and it has provided absolute returns of 6.78 percent over a one-month period in April.
The report highlights that gold prices have risen from a long-standing base of around US$ 2050 to a new range. This increase is primarily due to tensions in the Middle East and the Federal Reserve’s stance on policy rates.
The market has found some relief from the de-escalation of geopolitical tensions, although the potential for further conflict remains.
Despite resistance at the current levels of approximately US$2370 – US$2390, significant price corrections appear unlikely due to ongoing demand from central banks and retail consumers.
