Gold Prices: 10 Grams Of 22-24 Carats Rise By Rs 9,500 To Rs 10,600 From 2024 Lows; Strategy For Buying

Gold prices rose on April 24 after a sharp selling pressure. There has been slight volatility in gold prices this week as Iran and Israel have retained from airstrikes, much rather to gold's dismay. Nonetheless, the Rafah border in Gaza is back in the limelight with Israel's IDF soon to carry out a mission against Hamas in that untouched territory. This keeps Middle East tensions at the edge, and hence, the latest price rebounded from the previous session.

Due to nerve-wracking geopolitical tensions, gold prices have recorded huge gains by Rs 9,000 to Rs 10,600 in 10 grams of 22-carat and 24-carat from their 2024 lows.

Gold Prices India, April 24:

22-Carat Gold Prices:

22-carat gold has jumped by Rs 450 in 10 grams to Rs 66,600 from the previous day, while 100-gram has seen a massive jump of Rs 4,500 to Rs 6,66,000. 1-gram and 8-gram gold in 22-carat are up by Rs 45 and Rs 360 to Rs 6,660 and Rs 53,280 per 10 grams.

10 grams of 22-carat has skyrocketed by Rs 9,700 from 2024 lows which was of Rs 56,900 recorded on February 15, 2024.

In terms of metro cities, gold prices in 22-carat per 10 grams are Rs 67,300 in Chennai, Rs 66,600 in Mumbai and Kolkata, while it is at Rs 66,750 in the national capital, Delhi.

24-Carat Gold Prices:

On April 24, gold price jumped by Rs 490 to Rs 72,650 from the previous day, while 100-gram gold surged by Rs 4,900 to Rs 7,26,500. Also, 1-gram was up by Rs 49 to Rs 7,265, and 8-gram soared by Rs 392 to Rs 58,120 from the previous day.

Meanwhile, 24-carat of gold in 10 grams has jumped by Rs 10,580 from its 2024 lows of Rs 62,070 seen on February 15.

As of April 24, 24-carat in 10 grams stood at Rs 73,420 in Chennai, at Rs 72,650 in Mumbai and Kolkata, and at Rs 72,800 in Delhi.

Gold Prices Strategy!

Explaining the latest surge in gold prices, Motilal Oswal said, "Gold prices have witnessed a surge in recent months, attributable to demand from China and ongoing geopolitical events. Allocation to Gold can act as a hedge against any heightened volatility in a portfolio constituting risk assets."

Going ahead, Motilal believes that the gold bull market will be bolstered by a weaker dollar, a fall in yields and a sustained rise in hedging demand tied to rising economic and geopolitical risk.

According to Motilal, hedge funds and large speculators have significantly increased their net long positions in both gold and silver, reflecting a bullish sentiment in the market. Domestic imports of gold and silver in the first two months of the year have been remarkable, while physical demand and imports in China have also risen significantly.

Also, central banks, led by the People's Bank of China (PBoC), have been on a gold-buying spree. The PBoC has consistently increased its gold reserves for 16 consecutive months as of February, with other central banks like Turkey, India, Russia, and Uzbekistan also participating in this trend, it added.

In conclusion, Motilal's note said, "The precious metals market has been on a tear, driven by a combination of economic uncertainty, geopolitical tensions, and bullish investor sentiment. As the world navigates through these challenging times, gold and silver have once again proven their worth as safe-haven assets."

To investors, Motilal advised that while Gold can have a strategic allocation in portfolios, Silver should be considered only for tactical allocation

Gold and silver prices both were up in the last month too. Motilal pointed out that March 2024 was a great month for precious metals, particularly gold. The yellow metal embarked on a historic run, marking all-time highs on both the Comex and domestic fronts. Gold prices have gained an impressive 10% year-to-date, while silver, despite lagging behind gold's pace, has still managed to rise by 5%.

Key factors that supported gold's impressive performance, as per Motilal are, continuous buying by central banks, strong Chinese demand during the spring festival, rising rate cut expectations, mixed economic data points, and geopolitical tensions. However, headwinds such as a volatile dollar index, delayed rate cut expectations, higher inflation, and growth forecasts by the Fed have also come into play.