Gold prices in India have seen a significant decline, with MCX gold futures dropping by ₹870 to ₹73,612 per 10 grams on November 15, 2024. This decline follows a record high of ₹79,535 on October 30, 2023, marking a decrease of nearly ₹6,000. The drop is primarily attributed to a stronger US dollar and rising US Treasury yields, which have put downward pressure on gold prices. Additionally, global spot gold prices have fallen below $2,560 [597058fc].
Market analysts are closely monitoring the situation as the wedding season approaches in India, a period typically characterized by increased demand for gold. Colin Shah, Managing Director of Kama Jewelry, has predicted that gold prices could potentially reach $3,000 globally and ₹86,000 domestically in the near future. Jateen Trivedi from LKP Securities highlighted that higher-than-expected US Consumer Price Index (CPI) data, reported at 2.6% against an expectation of 2.4%, is contributing to the current price pressures [597058fc].
Furthermore, Sandip Raichura from PL Broking mentioned that there have been significant sell-offs in North American gold ETFs, which have also influenced price fluctuations. Despite the current downturn, the upcoming wedding season may drive demand for gold, making it an attractive time for buyers looking to invest in gold jewelry. Seven out of ten Indians view gold as a safe asset, and with the Reserve Bank of India (RBI) expected to cut rates next month, there is speculation that this could further boost gold prices [597058fc].