Gold prices reach an all-time high

Gold prices reached a new all-time high of $2,263.53 per ounce in the global market on Monday, driven by geopolitical tensions in Central Asia and indications of a rate cut by the US Fed. In India, MCX gold futures for April 2024 hit a record Rs 69,487 per 10 gm.
Colin Shah, Founder and MD of Kama Jewelry, attributed the surge in gold prices to the US Fed’s signal of a rate cut, making gold an appealing asset for central banks and safe-haven investors. This sentiment is further reinforced by expectations of lower interest rates, making gold a preferred investment choice over financial instruments.
Geopolitical uncertainties, such as the Russia-Ukraine war and the Israel-Hamas conflict spilling over to the Red Sea region, have fueled gold prices. Central banks, including China, have also increased their gold purchases, contributing to the demand for the precious metal as a safe haven asset.
Despite the ongoing demand for gold in Indian weddings where it is traditionally gifted to brides and grooms, jewellers are concerned about the high prices dampening consumer interest. This is evident in the declining imports of gold, reflecting the impact of soaring prices on domestic demand, according to industry experts.
Dr Joseph Thomas, Head of Research at Emkay Wealth Management, noted that gold prices have been on a steady upward trajectory due to expectations of a dovish Fed policy. The breakout of gold prices above key resistance levels indicates strong momentum in the near to medium term, though some profit-taking may occur.
The trend of rising gold prices is expected to continue as geopolitical tensions persist and the demand for safe haven assets remains high amidst global uncertainties, making gold a valuable investment option for investors seeking stability in turbulent times.