Gold has always been an important investment for Indians. It is not only worn as jewelery but is also seen as a valuable asset. In recent years, gold prices have seen considerable fluctuations. In particular, a major change in gold prices may be seen in early 2024.
In this article, we will take a look at the possible changes in gold prices from January 1, 2024. Will the price of gold fall or skyrocket? What will be the new rate of gold in the new year? We will answer all these questions here. Besides, we will also discuss the factors affecting gold prices.
Gold prices: an overview
Before understanding the changes in gold prices, let us take a look at the current price of gold and its importance:
| Description | Information |
| Current price of 24 carat gold (10 grams) | ₹63,970 |
| Current price of 22 carat gold (10 grams) | ₹58,650 |
| Gold price increase in 2023 | about 13% |
| Gold import in India (2023) | 600-650 tonnes (estimated) |
| Global gold price (per ounce) | $2,040 |
| Gold reserves with the Reserve Bank of India | more than 800 tons |
| use of gold | Jewelry, Investment, Industrial |
Gold Rate 2024: What will be the new rate?
Different experts have different opinions about gold prices in 2024. Some key estimates are:
- The World Bank estimates that the average price of gold will be $2,100 per ounce in 2024.
- According to Goldman Sachs, the average price of gold could be $2,133 per ounce in 2024.
- ABN AMRO estimates that the price of gold could remain around $2,000 an ounce.
- Some analysts believe that the price of gold could reach $2,750 to $2,810 per ounce.
In the Indian context, a slight decline has been observed in gold prices from January 1, 2024. The price of 24 carat gold has decreased from ₹63,970 to ₹63,420 for 10 grams. This decline is approximately 0.86%.
Factors affecting gold prices
Fluctuations in gold prices depend on many factors. Here are some key factors:
- Value of the US Dollar: When the dollar strengthens, gold prices fall and vice versa.
- Interest Rates: Low interest rates increase the demand for gold, while high interest rates reduce it.
- Geopolitical tensions: Gold prices increase in times of war or international crisis.
- Buying by central banks: When central banks buy gold, it increases prices.
- Inflation: During high inflation, people prefer to invest in gold.
- Supply and demand: Mining and consumer demand for gold also affect prices.
Gold prices in India: city-wise difference
Gold prices vary in different cities of India. This difference is due to local taxes, demand and supply. Here are the 24 carat gold prices in some major cities (for 10 grams):
- Delhi: ₹63,100
- Mumbai: ₹62,950
- Kolkata: ₹62,950
- Bengaluru: ₹62,950
- Chennai: ₹63,600
Gold Investment: Is it right to invest in gold right now?
The decision to invest in gold depends on many factors. Here are some points that may help you decide:
- Long term investment: Gold can give good returns in the long term.
- Portfolio diversification: Gold can balance your investment portfolio.
- Protection against inflation: Gold is considered a good hedge against inflation.
- Liquidity: Gold can be easily converted into cash.
However, remember to consider your financial goals and risk tolerance before investing in gold.
Gold Options: Other Investment Options
If you’re unsure about investing in gold, here are some other options:
- Gold ETFs: These are stock exchange traded funds that track the price of gold.
- Sovereign Gold Bonds: These bonds issued by the government are a safe way to invest in gold.
- Digital Gold: You can buy gold even in small quantities through online platforms.
- Gold Mutual Funds: These funds invest in gold and gold related companies.
Gold Rate Prediction 2025: Future gold prices
Here are some key projections about gold prices by 2025:
- JP Morgan estimates that the price of gold could reach $2,600 an ounce by the end of 2025.
- According to LongForecast, the price of gold could reach $2,799 per ounce in 2025.
- Some analysts believe that the price of gold could cross $3,000 per ounce by 2025.
However, these are all estimates and actual prices will depend on many factors.
Buying gold: what to keep in mind
If you decide to buy gold, here are some important things to keep in mind:
- Purity: Always buy hallmarked gold.
- Weight: Check the correct weight.
- Bill: Be sure to take the bill of purchase.
- Price: Know the current market price.
- Trusted Seller: Buy from a reputed jeweler or bank only.
- Purpose: Explain the purpose of purchase – investment or consumption.
Disclaimer
This article is for informational purposes only. Gold prices may change according to market conditions. Always consult a qualified financial advisor before making investment decisions. The information given in the article is as of 23 December 2024 and may change in future.
Investing in gold can be risky and its prices can fluctuate. Make sure you invest as per your financial goals and risk tolerance. Remember, diversification is an important part of a healthy investment strategy.
