Gold has always been the favorite investment of Indians. People buy gold for weddings, festivals or for savings. But in recent times, fluctuations are being seen in the prices of gold. While gold had reached its record level till a few days ago, now its prices have declined.
In this article we will know why gold has suddenly become cheap and what are the gold rates in 2024. We will also understand whether it will be beneficial to buy gold now or not. So let’s start and know every important information related to gold prices.
Why the fall in gold prices?
There are several reasons behind the fall in gold prices:
- strengthening of the US dollar: When the dollar strengthens, gold becomes cheaper. Recently an increase in the dollar index has been seen.
- increase in interest rates: The demand for gold has decreased due to the possibility of increasing interest rates by the US Federal Reserve.
- global economic recovery: After the Corona epidemic, there are now signs of improvement in the economy, due to which the safe haven demand for gold has reduced.
- Decrease in impact of Russia-Ukraine war: The increased uncertainty due to the war is now reducing, due to which the pressure on gold prices has reduced.
Today Gold Rates 2024
| City | 22 carat gold rate (per 10 grams) | 24 carat gold rate (per 10 grams) |
|---|---|---|
| Delhi | ₹55,650 | ₹60,710 |
| Mumbai | ₹55,500 | ₹60,540 |
| Kolkata | ₹55,350 | ₹60,380 |
| Chennai | ₹55,700 | ₹60,760 |
| Bengaluru | ₹55,400 | ₹60,440 |
| Hyderabad | ₹55,350 | ₹60,380 |
| Ahmedabad | ₹55,550 | ₹60,600 |
Would it be right to buy gold now?
After the fall in gold prices, many people are wondering whether it would be right to buy gold now. Experts have different opinions about this:
- Some experts believe that now is a good opportunity to buy gold because the prices have come down.
- At the same time, some say that the prices may fall further, so one should wait for a while.
- Gold can be bought now for long term investment.
- Those investing for short term should exercise caution.
Ways to invest in gold
If you want to invest in gold there are several options:
- physical gold: You can buy gold coins or jewellery.
- Gold ETF: You can invest in gold ETFs traded on the stock exchange.
- Sovereign Gold Bond:You can invest in these bonds issued by the government.
- digital gold: You can buy digital gold on online platforms.
Factors affecting gold prices
Many factors affect gold prices:
- global economic situation: Demand for gold increases as uncertainty increases in the economy.
- inflation: Gold prices increase when inflation increases.
- currency prices:Gold becomes expensive when the dollar is weak.
- interest rates: Investment in gold increases when interest rates decrease.
- geopolitical tensions: In case of war or tension the demand for gold increases.
Advantages and disadvantages of gold investment
Advantages:
- inflation protection
- portfolio diversification
- liquidity
- increase in value in the long run
Loss:
- no regular income
- Storage and insurance costs
- price fluctuations
future of gold prices
Experts believe that gold prices may rise in the long term. Some major reasons are:
- global economic uncertainty: After the Corona epidemic, the economy of many countries has still not fully recovered.
- geopolitical tensions: Russia-Ukraine war and other tensions persist.
- threat of inflation: Inflation rates are still high in many countries.
- purchases of gold by central banks: Central banks of many countries are increasing the amount of gold in their reserves.
Things to keep in mind while investing in gold
- accuracy check: Always buy hallmarked gold only.
- purchase time: Prices are higher during festivals, so buy on normal days.
- long term investment: Consider gold as a long-term investment.
- portfolio diversification: Keep only 10-15% of your investment portfolio in gold.
- Consider different options: Apart from physical gold, also consider ETFs or sovereign gold bonds.
Disclaimer: This article has been written for informational purposes only. Consult your financial advisor before investing in gold. Gold prices fluctuate and future prices cannot be guaranteed. Keep your risk profile and financial goals in mind when making investment decisions.