Gold Price Holds Steady Above Rs 1,24,000
Gold prices in India today held steady to Rs 1,24,530, after the festive season. On Tuesday, Gold prices slid the most in 12 years after a weeks-long furious rally. A confluence of factors dragged down the precious metal, including positive trade talks between China and the US, a stronger dollar, overstretched technicals, and uncertainty on investor positioning due to the government shutdown, were factors cited for the price drop on the global scale.
While in India, the end of the seasonal buying spree stands as the major reason for the dip. Gold prices rose globally on Thursday, following a two-day slump, as geopolitical uncertainties emerged following the US sanctions on Russian oil companies. On India’s Multi Commodity Exchange, gold futures for December delivery rose 2% to trade at Rs 124,250 per 10 gram.
JP Morgan’s Bullish Outlook on Gold
JP Morgan expects the bull run to stay intact with the price to reach an average $5,055 per ounce by the end of the fourth quarter of 2026. The forecast is based on the back of rising investors demand and central bank buying that is expected to average at nearly 566 tons of the metal in a quarter of 2026.
According to Natasha Kaneva, Head of Global Commodities Strategy at JP Morgan, gold remains our highest conviction long for the year, and we see further upside as the market enters a Fed rate-cutting cycle.
Gregory Shearer, Head of Base and Precious Metals Strategy, JP Morgan, also noted that the combination of US Federal Reserve cutting the cycle with overlays of stagflation anxiety, concerns surrounding Fed independence and the broader debasement hedging is helping the gold’s upward move.
Gold Prices in Major Indian Cities
In New Delhi, the price stood at Rs 1,24,090, per 10 gm, and in Mumbai, it stood at Rs 1,24,310 on Friday. In Bengaluru, the rate stood at Rs 1,24,410, while in Kolkata, it was Rs 1,24,140 per 10 gm.
The price of the precious commodity was the highest in Chennai, trading at Rs 1,24,670 per 10 gm. The Dec. 5 futures stood at Rs 1,24,247 according to the Multi-Commodity Exchange.
For investors looking to diversify their portfolio, investing in gold can be a viable option. However, it’s essential to stay updated on the latest gold market trends and gold price analysis to make informed decisions.
Impact of Global Events on Gold Prices
Global events, such as the US sanctions on Russian oil companies, can significantly impact gold price volatility. Investors should stay informed about the latest global economic news and its potential impact on the gold market.
In conclusion, the gold price holding steady above Rs 1,24,000 is a significant development for investors. By understanding the factors influencing the gold market and staying updated on the latest trends and analysis, investors can make informed decisions and maximize their returns.