What Should Investors Do As Gold Price Rallies To New Highs?

Due mostly to the geopolitical context, the price of yellow metal has reached an all-time high. Market observers witnessed gold prices reaching an all-time high (MCX - Rs 62,600/10 gm and Retail - Rs 63,380/10 gm as of 29th November). Gold hit a record high of Rs 62,600 per 10 grams on the Multi Commodity Exchange (MCX) on Thursday, with retail prices hitting Rs 63,380.

Gold hit a record high of Rs 62,600 per 10 grams on the Multi Commodity Exchange (MCX) on Thursday, with retail prices hitting Rs 63,380. It dropped to Rs 62,596 within a day (Gold MCX-Gold Price MCX). The price of gold per troy ounce was almost $2,041 globally. Because of gloomy economic data, falling US yields, and expectations of a loose monetary policy, the metal hit an unparalleled peak in the local market and a seven-month high on Comex.

India's gold imports increased dramatically to 123 metric tonnes ($7.2 billion) in October, ahead of the festive season, above the previous 12-month average of 77 tonnes ($3 billion). Since early October, US gold prices have been rising parabolically. Given that the US Federal Reserve is about to announce a policy change, this upward trajectory in gold prices may persist.

The price of gold has seen a positive trend even across national borders, with prices rising to record highs in the UK, Australia, China, and Japan, among other nations. And with ongoing geopolitical tensions as well as the approaching wedding season, the spike in gold prices isn't likely to abate.

Is It An Opportune Moment To Remain Invested In Gold?

Mangesh Chauhan, MD & CFO of Sky Gold Ltd said, "There are few investment avenues that give assured returns to an investor over three-five years. With an annualized return ranging between 9-12% per annum, gold is not only a luxury item or status symbol but also a wise investment decision. With ongoing geopolitical tensions, sharp correction in US treasury yields and the Fed rate hikes, gold has exhibited optimism with prices rallying to an all-time high. That said, the recent price performance and macroeconomic factors do not hint towards any pullback in the short-term."

"In India too, gold has always held the faith of the buyers and stood resilient during crises like the pandemic where India's gold jewellery purchases surpassed those in America, Europe, and the Middle East combined. The yellow metal's universal appeal and the current bullish momentum offer an opportune moment to remain invested in gold as a long-term strategy. One can expect a 25-30% return in the next two years", stated Mangesh Chauhan.

Is It The Right Moment To Take An Exit?

Umesh Mohanan, Executive Director and CEO, Indel Money said, "The metal price has hit an all-time high, mainly as an aftermath of the geo-political situation and their divide. Of course, at peak, it is never a buy position. But from a common Indian man's perspective the sell position is not appropriate as the metals vests with them in a jewellery format, where it shall be attached with a lot of sentimental value.

This is the right opportunity for such customers to monetize their jewellery by means of a gold loan due to the maximum exposure available, which should and can be utilized for their capital/household expenses. For the invested people vested in bullion as it is, it's the right moment to take an exit for the booking of their immediate gains."

Should Investors Consider Accumulating Yellow Metal?

Manoj Dalmia of Proficient Group stated, "On Thursday, gold made an all time high of Rs 62,600 per 10 grams on the Multi Commodity Exchange (MCX), with retail prices reaching Rs 63,380. It saw an intraday dip to Rs 62,596 (Gold MCX-Gold Price MCX).

Globally, gold prices hovered around $2,040 per troy ounce. The metal reached a seven-month high on Comex and an unprecedented peak in the domestic market due to discouraging economic data, decreasing US yields, and anticipation of a lenient monetary policy. Consequently, investors are strategically shifting towards including gold in their portfolios.

Given the mentioned data points and with increased demand for gold with the upcoming festive and wedding season, there is an optimistic outlook on gold, making it a favourable time for investors to consider accumulating this precious metal. Traders can go with a long position in Gold futures in MCX as it has given a fresh breakout after consolidation."

Mr.Chintan Mehta, CEO, Abans Holdings said, "Investor should partly book their profit and keep position lite. Gold from low has rallied approx 220 $ in the international market and from bottom of 56500 in MCX to 62500. It's pricing in the change in the stance of Fed committee members and taking cognizance of the interest cycle picking out and geo-political tension easing out. Risk reward wise it's better to stay lite and wait for lower levels to enter again in trade to be part of the next bull cycle."

How To Navigate This Golden Opportunity After Gold Showcased A Consistent Growth Rate Since 2001?

According to Mehak Srivastava, head of marketing at SahiBandhu Gold Loans, as gold prices soar to unprecedented levels on both domestic and international fronts, SahiBandhu, the trusted gold loan lending platform, advises investors to navigate this golden opportunity strategically.

The recent surge is attributed to a confluence of factors, including the depreciating Indian rupee, heightened demand during festive seasons, and global inflation concerns. Recognizing gold as a reliable hedge, investors should monitor market trends closely and make informed decisions based on their risk tolerance. SahiBandhu encourages traders to consider fresh buy positions in Gold and Silver, strategically placing stop-loss levels for optimal risk management.

In times of economic uncertainty, gold stands out as a sought-after investment, showcasing a consistent growth rate since 2001. Beyond being a hedge against asset declines, gold's liquidity sets it apart, offering a valuable asset class for diversification. Seize the opportunity - purchase gold wisely, secure your financial position, and embrace the enduring allure of this precious metal.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.