Buy or Wait? Gold Hits All-Time High: Will It Cross ₹1,00,000 in 2024?

Gold prices have soared to new heights, with the MCX gold rate hitting ₹77,839 per 10 gm and spot gold prices reaching $2,722 per troy ounce. 

Experts attribute this price rally to a mix of geopolitical uncertainties, potential interest rate cuts, and the upcoming US Presidential election. These factors have created a volatile environment for gold, which is often seen as a safe haven during periods of uncertainty.

As the festive season approaches, particularly Diwali and Dhanteras, gold demand is expected to rise significantly in India, where buying gold is deeply rooted in tradition. Investors may find it challenging to time their profit-booking as prices are likely to remain volatile, driven by both international and domestic factors.

Factors Driving Gold’s Uptrend:

• Geopolitical Tensions: Ongoing uncertainties globally, including political unrest and conflicts, are pushing investors towards gold as a safe haven.

• Interest Rate Cuts: Speculation about potential rate cuts by the US Federal Reserve post-election is bolstering gold prices.

• US Presidential Election 2024: The political climate in the US is adding to the unpredictability of gold prices, with further volatility expected until the results are out.

• Festive Demand: In India, the demand for gold typically surges during Diwali and Dhanteras, reinforcing upward price momentum.

Will Gold Cross ₹1,00,000 This Year?

Analysts are cautiously optimistic. While the current rally suggests further gains, much depends on the outcome of global events. Colin Shah, MD of Kama Jewelry, advises buying gold before Diwali 2024, as prices could rise further during the festive season and beyond, depending on the Fed’s post-election decisions. However, the market may experience some short-term volatility due to the election and geopolitical risks.

Current Gold Prices:

• 22 Karat Gold: ₹7,280 per gram in Pune

• 24 Karat Gold: ₹7,942 per gram

With strong demand in India and a favorable international environment, it seems likely that gold may continue its upward trajectory. Whether it crosses the ₹1,00,000 mark will depend on the balance of these various factors in the coming months.