Gold Prices Reach New Heights
Gold prices have recently soared to record levels, driven by a variety of factors. Key among these is the anticipation of a reduction in interest rates by the United States central bank, the Federal Reserve. On September 18, traders expect a potential announcement that could further bolster gold prices. Additionally, the weakening US dollar has contributed to gold’s upward trajectory. On September 16, spot gold was priced at $2,580.81 per ounce, marking a 0.2 percent increase. Notably, on September 13, gold reached an all-time high of $2,585.99 per ounce.
Gold Prices in India
In India, the price of 24-carat gold stands at approximately Rs 73,690 per 10 grams as of September 16. This marks a gain of around 2.52 percent over the past week and a 2.87 percent increase over the past ten days. Experts suggest that gold demand typically rises when the US dollar weakens. Rahul Kalantri, Vice President of Commodities at Mehta Equities, notes that gold futures have surged past the $2,600 per ounce milestone.
Market Expectations and Predictions
Support and Resistance Levels
Kalantri mentions that gold is expected to find support in the range of $2,550 to $2,562 per ounce, with resistance levels identified between $2,598 and $2,612 per ounce. Market participants are closely monitoring the Federal Reserve’s decisions regarding interest rates, as any reduction is likely to drive further appreciation in gold prices. The ongoing weakness of the dollar is also expected to maintain upward pressure on gold prices.
Geopolitical Tensions Fuel Gold Demand
Gold’s ascent can also be attributed to increasing geopolitical tensions, particularly in regions like Ukraine and the Middle East. Furthermore, strained relations between the US and China contribute to uncertainty, prompting investors to seek refuge in gold, which is traditionally viewed as a safe-haven asset. Analysts suggest that this trend may persist, with some forecasts predicting that gold prices could potentially reach $3,000 per ounce.
Projected Price Trends
Short-term and Long-term Predictions
According to Peter McGuire, CEO of XM Australia, retail demand for gold remains robust globally, with many central banks increasing their gold reserves. Given the current demand dynamics, physical gold prices are expected to continue rising. Experts speculate that gold could reach $2,700 per ounce by the end of this month. Financial institutions like Goldman Sachs and Bank of America project prices may escalate to $2,700 and $3,000 per ounce, respectively, by next year.
Gold Prices in India: Future Outlook
The outlook for gold prices in India appears similarly optimistic, with projections suggesting that prices may touch Rs 75,000 per 10 grams. Jatin Trivedi, Vice President of Research at LKP Securities, believes that a rate cut by the Federal Reserve could lead to increased buying activity in gold. Current support for gold in India is set at Rs 71,000, with resistance levels noted at Rs 74,500 to Rs 75,000 per 10 grams.
