Gold Prices Rebound, Expert Predictions and Market Reactions

Recent changes in custom duty have led to a significant drop in gold prices. However, on August 1, gold prices rebounded as market reactions to the US Federal Reserve’s commentary on interest rates influenced the market. Currently, the spot price of gold in the bullion market stands at Rs 69,721. The key question now is whether to buy gold at this price or wait for potential further declines.

Commodity experts provide insights into future price movements. Anuj Gupta, Commodity Head at HDFC Securities, identifies Rs 69,000 as a crucial support level for gold, with resistance at Rs 71,500. Gupta believes that gold prices are unlikely to drop below current levels due to the anticipated interest rate cuts by the Federal Reserve, which would benefit gold. Additionally, rising tensions in the Middle East are expected to drive gold prices higher, as geopolitical uncertainty typically boosts gold investments.

Prathamesh Mallya of Angel One Limited concurs, predicting that gold prices will continue to rise due to geopolitical tensions and the potential for interest rate reductions. The recent custom duty reduction on gold in the General Budget 2024 has led to a sharp decline in prices, increasing jewelry demand significantly.

In Mumbai’s bullion market, the demand for gold and silver has surged. The reduction in custom duty has led to a 20% increase in daily demand, and bullion traders anticipate strong jewelry sales during the upcoming festive season. This version enhances readability and SEO by using clear headings, optimizing for keywords, and maintaining a cohesive flow.

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