Gold in the Tech Age: How Innovation Influences Gold Prices

2023 proved to be a prosperous year for gold. According to credible sources, the precious metal yielded an 11.2% return during a 20-year period. With the exception of 2014 and 2015, gold prices have increased throughout the last ten years. In spite of the continuous geopolitical problems and the epidemic, gold yielded higher profits than the NIFTY 50.

This upward tendency has increased anticipation over the 2024 gold price prediction (Today’s Gold Rate). The general consensus among analysts and dealers is that gold prices will rise to ₹ 70,000 this year. Even though it might be feasible, it's crucial to evaluate the current situation realistically. We'll examine some arguments for and against the anticipated price increase in this blog.

If you're thinking about buying gold, you must to keep abreast of these trends and track annual changes in the geopolitical and economic spheres.

India's Gold Rate Forecast

A possible increasing trend in the gold rate is indicated for India in 2024, which is contingent upon a number of economic and geopolitical circumstances. By the end of 2024, analysts predict that the price of gold might be close to ₹75,000 per 10 grams. The forecast is supported by multiple important factors:

In Pune, 22-karat gold costs ₹6,705 per gram. (Gold Rate Today Pune) The current gold rate in Bangalore is ₹6,705 per gram of 22-karat gold.(Today Gold Rate in Bangalore)

In Chennai, 22-karat gold is currently priced at ₹6,705 per gram.(Today Gold Rate in Chennai)

Economic Uncertainties: Gold typically does well when there is a lot of inflation and economic uncertainty. Fears about the economy, particularly inflationary pressures, are predicted to encourage higher gold rates at these times.

Geopolitical Tensions: The Middle East's ongoing geopolitical tensions are having an effect on gold prices. Because gold prices are rising, there is a natural increase in demand for gold as a safe-haven asset due to increased pressures.

Central Bank Policies: A pivotal role is played by the decisions made by central banks, namely the US Federal Reserve. Gold prices may increase if the Fed lowers interest rates. The Reserve Bank of India's gold acquisitions follow similar pattern as well.

Global Demand: As gold prices rise, so does the demand for the metal in important markets like China. The market has already been greatly impacted by China's notable gold purchases this year.

Unfavourable Factors for the 2024 Gold Price Forecast-

Tighter Monetary Policy: Central banks worldwide are initiating interest rate hikes in an effort to fight inflation. In general, rising interest rates make gold less appealing when compared to other investment options like bonds. This might restrain price increases and reduce investor demand for gold.

Value in US dollars: In relation to the INR, the US dollar is getting stronger. As the dollar continues to strengthen and becomes more expensive for buyers holding other currencies, gold prices may decline.

Enhanced Risk Sentiment: A return to risk appetite in the market may occur if geopolitical tensions ease and global economic concerns abate. This has the potential to divert investors from safe haven assets like gold and toward riskier assets that could potentially yield higher returns while also potentially slowing the rise in gold prices.

Factors Contributing to the Anticipated Gold Price Forecast in 2024-

Geopolitical Trends:

The ongoing hostilities between Ukraine-Russia and Israel-Hamas continue to have an impact on the global economic landscape. As is well known, geopolitical uncertainties drive investors to safe haven assets such as gold in order to hedge against market volatility and potential currency devaluations. As long as these tensions persist, they have the potential to drive up demand for gold and consequently its price.

Inflationary Prices:

Global inflation is a major concern. The world's major central banks are attempting to strike a delicate balance between lowering inflation and fostering economic development. Persistent inflation weakens the purchase power of fiat currencies, making gold more appealing. If
inflationary pressures continue until 2024, it might fuel demand for gold and contribute to a Price increase.

Concerns about a worldwide economic slowdown have led the International Monetary Fund (IMF) to lower its growth projections. This can result in increased market volatility, risk aversion, and potentially drive investors to gold as a protected hedge against economic uncertainty.

Weakening Rupee:

The value of the Indian rupee is an important factor in determining the domestic price of gold. A weaker rupее relative to the US dollar causes an increase in gold prices in India. If the rupee depreciates in 2024, it may lead to higher domestic gold prices and bring it closer to the ₹ 70,000 mark. On February 20, 2024, the INR-USD rate was Rs. 82.96. Last year, it was 82.75.