The price of gold is expected to rise further in the upcoming week as per recent analysis. Industry experts believe that international gold rates could climb towards $2,600 per ounce while domestic gold prices in India may surge to around Rs. 77,000 per 10 grams.
Angel One, a leading stock brokerage firm, shared their insights on the gold market after observing recent fluctuations. While gold prices saw some volatility last week ranging from $2,600-2,660/oz internationally and Rs. 74,800-76,500/10g in India, Angel One feels further gains are in store.
Geopolitical uncertainties, inflation concerns and probable interest rate hikes have been supporting gold prices. Any escalation in global tensions or sluggish economic progress could boost safe-haven buying of gold. Meanwhile, the recent correction was attributed to easing of some risks and expectations of a smaller 25 bps rate hike by US Fed in the near future.
Rather than attempting to time the market, experts advise investors to use gold as a strategic asset and gradually accumulate it across varying price points. This allows for cost averaging and better participation in gold’s long-term appreciation.
Government-backed Sovereign Gold Bonds are also highlighted as a convenient investment alternative to physical gold. Offering assured returns of 2.5% annually, capital protection and no tax burden if held till maturity, SGBs provide diversification benefits without storage headaches.
With geopolitical and economic uncertainties persisting, gold is seen edging higher in its role as an inflation hedge and safe store of value. A balanced approach to investing in gold through downturns and upturns is recommended for portfolio resilience over the long haul.
