Gold prices hit record high, could reach ₹78,000 per 10 grams in coming weeks
Sep 25, 2024, 11:57 IST
Gold prices surged to a historic high on Tuesday, September 24, as global economic conditions and geopolitical tensions pushed the precious metal to new levels, a CNBC report said. The spot price of gold rose to an unprecedented $2,638.37 per ounce during the day’s trading, while US gold futures also spiked, reaching $2,661.60.
In India, the cost of 24-carat gold climbed sharply, hitting ₹76,330 per 10 grams, marking an ongoing upward trend that analysts suggest could see prices nearing ₹78,000 per 10 grams in the coming weeks.
While the prices of gold hit their record high yesterday (September 24), today (September 25) the prices remained around Rs 76,000 per 10 grams. The price of 24-carat gold, recognised for its exceptional purity, was set at ₹76,370 per 10 grams. Meanwhile, 22-carat gold, commonly used in jewellery for its added durability from alloy mixing, was available at ₹70,010 per 10 grams.
Here are the gold prices in some major cities of India today:
Gold prices touch record-high, analysts react
Industry experts are optimistic that gold prices will continue their upward trajectory. As per a CNBC report, Colin Shah, Managing Director of Kama Jewelry, predicts that the global price of gold could reach as high as $3,000 per ounce in the medium to long term. Shah attributed the ongoing rally to favourable global conditions, including the anticipated rate cuts by the US Federal Reserve. He also expected that in India, the price of gold will surpass ₹78,000 per 10 grams during the upcoming festive period.
On the other hand, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, observed that COMEX gold surged to $2,689.40 per ounce due to a sharp decline in US consumer confidence, which increased the likelihood of aggressive rate cuts by the Federal Reserve.
"COMEX gold surged to $2,689.40 per ounce yesterday as a significant drop in US consumer confidence heightened expectations for aggressive interest rate cuts by the Federal Reserve. The US Conference Board's Consumer Confidence Index fell sharply in September to 98.7, down from 105.6 in August, its largest decline in three years. Concerns over the labor market, combined with lower US Treasury yields and the US dollar nearing a 14-month low, further fueled the rise in gold prices. Additionally, Fed Governor Michelle Bowman highlighted persistent inflation risks and advocated for a cautious approach to rate cuts to avoid reigniting inflation. Today, COMEX gold prices reached a record high of $2,694.89 per ounce, and expected to hold gains as the CME FedWatch Tool now indicates a 62.2% chance of a 50 basis point cut in November, up from just 29% a week ago. Ongoing fears of an escalating Israel-Hezbollah conflict are likely to enhance gold's appeal as a safe-haven asset," Chainwala said.
Saish Sandeep Sawant Dessai, a base metals analyst at Angel One Ltd., noted that bullion prices climbed during yesterday's trading session, driven by momentum from the US Federal Reserve's bold rate cut and expectations of further reductions.
"The Fed policymakers said their large half-point rate cut last week was meant to try to sustain what they see as an emerging and healthy balance in the economy. Chicago Fed Bank President Austan Goolsbee said there are "lots of cuts" to come over the next 12 months, while Fed President Neel Kashkari noted that the actual path would depend on incoming data. Fed futures traders have priced in 75 basis points in rate cuts by the end of 2024, according to the CME FedWatch Tool.
"Zero-yield bullion tends to be a preferred investment in a low interest rate environment and during geopolitical turmoil. On the geopolitical front, Hezbollah devices explode again in Lebanon on Wednesday, stoking tensions of wider conflict after similar explosions of the group's pagers the day before. This boosted the demand for safe haven gold," Dessai said.
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In India, the cost of 24-carat gold climbed sharply, hitting ₹76,330 per 10 grams, marking an ongoing upward trend that analysts suggest could see prices nearing ₹78,000 per 10 grams in the coming weeks.
Gold prices today
While the prices of gold hit their record high yesterday (September 24), today (September 25) the prices remained around Rs 76,000 per 10 grams. The price of 24-carat gold, recognised for its exceptional purity, was set at ₹76,370 per 10 grams. Meanwhile, 22-carat gold, commonly used in jewellery for its added durability from alloy mixing, was available at ₹70,010 per 10 grams.
Here are the gold prices in some major cities of India today:
| City | 22 Carat Gold Rate Today | 24 Carat Gold Rate Today |
| Delhi | 70,160 | 76,520 |
| Mumbai | 70,010 | 76,370 |
| Ahmedabad | 70,060 | 76,420 |
| Chennai | 70,010 | 76,370 |
| Kolkata | 70,010 | 76,370 |
| Gurugram | 70,160 | 76,520 |
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Gold prices touch record-high, analysts react
Industry experts are optimistic that gold prices will continue their upward trajectory. As per a CNBC report, Colin Shah, Managing Director of Kama Jewelry, predicts that the global price of gold could reach as high as $3,000 per ounce in the medium to long term. Shah attributed the ongoing rally to favourable global conditions, including the anticipated rate cuts by the US Federal Reserve. He also expected that in India, the price of gold will surpass ₹78,000 per 10 grams during the upcoming festive period.
On the other hand, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, observed that COMEX gold surged to $2,689.40 per ounce due to a sharp decline in US consumer confidence, which increased the likelihood of aggressive rate cuts by the Federal Reserve.
"COMEX gold surged to $2,689.40 per ounce yesterday as a significant drop in US consumer confidence heightened expectations for aggressive interest rate cuts by the Federal Reserve. The US Conference Board's Consumer Confidence Index fell sharply in September to 98.7, down from 105.6 in August, its largest decline in three years. Concerns over the labor market, combined with lower US Treasury yields and the US dollar nearing a 14-month low, further fueled the rise in gold prices. Additionally, Fed Governor Michelle Bowman highlighted persistent inflation risks and advocated for a cautious approach to rate cuts to avoid reigniting inflation. Today, COMEX gold prices reached a record high of $2,694.89 per ounce, and expected to hold gains as the CME FedWatch Tool now indicates a 62.2% chance of a 50 basis point cut in November, up from just 29% a week ago. Ongoing fears of an escalating Israel-Hezbollah conflict are likely to enhance gold's appeal as a safe-haven asset," Chainwala said.
Saish Sandeep Sawant Dessai, a base metals analyst at Angel One Ltd., noted that bullion prices climbed during yesterday's trading session, driven by momentum from the US Federal Reserve's bold rate cut and expectations of further reductions.
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"In yesterday’s trading session, the bullion prices traded higher as traders embraced the momentum generated by the U.S. Federal Reserve's bold interest rate cut and signs that further reductions were on the horizon."The Fed policymakers said their large half-point rate cut last week was meant to try to sustain what they see as an emerging and healthy balance in the economy. Chicago Fed Bank President Austan Goolsbee said there are "lots of cuts" to come over the next 12 months, while Fed President Neel Kashkari noted that the actual path would depend on incoming data. Fed futures traders have priced in 75 basis points in rate cuts by the end of 2024, according to the CME FedWatch Tool.
"Zero-yield bullion tends to be a preferred investment in a low interest rate environment and during geopolitical turmoil. On the geopolitical front, Hezbollah devices explode again in Lebanon on Wednesday, stoking tensions of wider conflict after similar explosions of the group's pagers the day before. This boosted the demand for safe haven gold," Dessai said.