As the U.S. elections approach, gold prices in India have reached ₹80,000 per 10 grams, reflecting a significant increase driven by geopolitical tensions and economic uncertainties [30364808]. This rise comes as global spot gold prices have increased to $2,737.9 per ounce, with U.S. gold futures slightly down at $2,744.7 [ddb0007f]. The surge in gold prices has been attributed to a combination of factors, including ongoing conflicts in the Middle East and the uncertainty surrounding the upcoming U.S. presidential elections scheduled for November 5, 2024 [30364808].
In India, gold sales have decreased by 10 to 20 percent as consumers are deterred by high prices and the uncertainty of the election results [1a822ba0]. Analysts had previously noted a change in buying sentiment since July, when the Indian government reduced the import duty on gold, which initially boosted demand [1a822ba0]. However, with the elections imminent, the market is bracing for potential volatility. Trump’s potential victory could strengthen the dollar, negatively impacting gold prices, while a win for Kamala Harris might reverse the 'Trump trade', potentially benefiting gold [ddb0007f].
Despite the dip in sales, Indian investors are sitting on surplus cash from a strong stock market, which may lead to some investment in gold as a hedge against inflation and economic uncertainty [1a822ba0]. The overall outlook remains bullish, with sustained demand expected in the near to medium term, making it essential for buyers to stay informed about market trends and economic conditions [30364808].
Analysts predict that gold prices may experience a marginal decline after the elections as certainty returns to the markets, despite having gained over 40% in the past year [ddb0007f]. Current support levels for gold prices are between ₹77,000 to ₹77,500 per 10 grams, while resistance is set at ₹79,000 per ounce [30364808]. As investors await the results, the interplay between a strong dollar and gold prices continues to be a critical factor, as a robust dollar can limit gold price increases [30364808].