Gold price crosses Rs 74,000 per 10 gram

Thursday, 23 May, 2024
Gold prices are likely to touch $3000-$3200 soon. (Photo courtesy: Wikipedia)

Mumbai: Gold prices have been booming for the last few months. According to the Indian Bullion Jewelers Association (IBJA), the price of 10 grams of 24-carat gold increased to Rs 74,220 per 10 grams, which was 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," Emkay Wealth Management, a brokerage firm, said in its report.

As of April 30, physical gold has delivered a CAGR of 19.42 per cent in the 12 -month period and absolute returns of 6.78 per cent (1-month period) during April.

As per the report, Gold prices moved up from the US$ 2050 base where it was hovering around for a long time, to a new range mainly due to the tensions that emerged in the Middle East and also on the back of the Fed stance about the policy rate. 

The markets have been comforted by the de-escalation of the geopolitical situation, but the possibility of further tension cannot be ruled out.

While gold may still continue to be resisted at the current levels close to $2370-$2390, the probability of any deeper corrections looks weak due to central bank demand and retail demand.

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