Throughout the fiscal year 2023–2024, India’s gold prices were driven by rising geopolitical tensions around the world. Significant volatility was seen in the yellow metal, which was mostly caused by slower development in developed nations and the monetary tightening measures taken by central banks throughout the world in reaction to higher than average levels of inflation.
The price of MCX gold increased by more than 12 percent in FY24, from around ₹59,400 per 10 grams at the beginning of the year to over ₹67,000 per 10 grams at the conclusion. Numerous international crises, including the ongoing war between Russia and Ukraine and the Israel-Hamas conflict, characterized this fiscal decade.
“Gold prices have moved steadily higher over the last six months as expectations of a dovish Fed policy have been gaining ground. The fall in interest rates is a positive for gold prices. The key monitorable remains the expectations building around the timing of Fed rate cut.”
Joseph Thomas, Head of Research, Emkay Wealth Management.
Jewelers say that the demand for the precious metal in the nation is unlikely to be impacted by the ongoing increase in gold prices.
“Positive feedback from customers pleased with their timely purchases as prices continue to rise, coupled with upcoming festivals like Gudi Padwa and Akshay Tritya, the demand is expected to further drive business. Anticipation is high for the upcoming wedding season in the following quarter, which is poised to amplify this positive sentiment.”
Saurabh Gadgil, Managing Director and CEO, PNG Jewellers
India is one of the biggest markets for gold, according to the World Gold Council (WGC), and rising affluence is fueling demand.
Within the nation’s cultural fabric, gold is highly significant. It is seen as a store of value as well as a symbol of wealth and status, and it is essential to many rituals. In the countryside, practical evaluations of the security and portability of gold jewellery are entwined with a deep affinity for the metal, which reinforces the idea that gold is a wise investment.
“In India, this may initially impact customer buying patterns, yet optimism is prevalent as Akshay Tritiya is around the corner, where we anticipate a surge in gold jewellery purchases. Despite potential volume effects due to budgetary considerations among Indian customers, historical trends suggest a positive outlook for gold sales.”
Mitesh Khimji, Director of Khimji Jewellers
