1 Gram Gold Cheapest To Buy: Should You Continue To Invest In Yellow Metal In June 2024?

Gold prices in India are currently between Rs 72,000 to Rs 74,000 across states and even on market. The cheapest gold to buy is of 1 gram in 24K, 22K, and 18K. In cities, gold prices of 1 gram is currently between Rs 5,400 to Rs 7,350. In June 2024, brokerage Axis Securities suggests gold investment as it is the preferred asset in the year compared to other asset classes like bond yields.

Data from Axis Securities revealed that gold emerged as one of the best-performing asset classes for 2024, with prices rising by 14% in INR terms. In the last three months, Gold prices went up by 8%/4%/2% in INR terms and
9%/3%/2% in USD terms.

In Axis Securities view, the strong rally pushed gold prices above $2425/oz for the first time in recent months. The positive momentum in gold prices was driven by expectations of a rate-cut cycle, increasing geopolitical tensions, central bank purchases, and rising volatility in the equity markets.

From 2024 till now, gold is outperforming the other asset classes. This outperformance was also witnessed in 2022 and 2023.

Looking ahead, the brokerage's note said, "we believe Gold will continue to have an edge over other asset classes in 2024. It will be seen as a tool to facilitate the flight to safety as the risk of a slowdown in the US market will continue to support the gold prices. Fundamentally, the price of Gold is inversely related to bond yields, and any weakening in yields will continue to have a positive impact on the price of Gold."

According to the brokerage, in current scenario, Gold will remain a preferred asset class until uncertainties surrounding the Russia-Ukraine and Middle East crisis subside and will continue to attract investment as a proven hedge against other asset classes. Gold prices will continue to find support from prevailing geopolitical risks as well as concerns over growth and inflation pressures in the global environment.

Hence, Axis Securities note said, "We maintain our neutral stance on Gold and recommend a 'Buy on Dips' strategy."

Four key factors are also highlighted by Axis Securities on investing gold. They are:

- Low yield: Low yields are the driving force for the Gold rally. With central banks at the peak of the rate hike cycle, Gold will continue to attract investments in the near future.

- Slowdown risk mounts over the US market and Gold will continue to look attractive as a hedging instrument to balance the risk.

- Gold is the best anti-inflation asset.

- Gold provides 'flight for safety' given the recent geopolitical conflict.

Gold prices are broadly flat in June, compared to 2% gains in May 2024, and 5% surge in April 2024. The highest increase in gold prices at retail stores of India was seen in March month with upside of 8.4%.

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.