The price surge in both gold and silver continues to break records, with experts predicting further increases driven by factors such as the upcoming Diwali celebrations and the winter wedding season. As of April 9, gold in New Delhi was priced at Rs. 73,970 per 10 grams, while silver stood at Rs. 85,500 per kilogram. Projections suggest that by December 2024, gold could reach Rs. 76,000 per 10 grams and silver Rs. 95,000 per kilogram.
Investors have witnessed impressive returns from both precious metals in recent years, with gold and silver delivering returns of 83% and 103% respectively since the beginning of 2020. This outstrips the performance of the Sensex and traditional investment avenues like fixed deposits.
However, while the rally in gold and silver prices continues, experts caution that resistance points may lead to price corrections in the near term. Amit Gupta of Kedia Advisory suggests waiting for gold prices to fall to around Rs. 64,000-65,000 before considering buying, while for silver, a dip towards the Rs. 75,000-76,000 range presents an opportune time to invest. Riya Singh from Emkay Global highlights strong resistance levels both domestically and internationally, suggesting that profit-taking may be on the horizon for both precious metals.
Several factors contribute to the upward trajectory of gold prices, including speculation of US interest rate cuts, geopolitical tensions, and central bank purchases. Similarly, silver's surge is fueled by industrial demand, particularly from China, along with increased imports into India driven by lower duties and significant purchases from the United Arab Emirates. Additionally, ongoing geopolitical tensions and economic uncertainties continue to drive investors towards safe-haven assets like gold and silver.
