Celebrating Gudi Padwa even at high gold price!

Gold price support over Rs 61K per 10 grammes 

Right now our auspicious festive Gudi Padva, is just at latch and gold price trend is on rock! At the occasion Somasundaram PR, Regional CEO, India at World Gold Council (WGC) said, “This year Gudi Padwa is being celebrated even as gold prices are headed for historic highs in the domestic market.  

As economic growth influences demand significantly and this gets reflected in gold purchases on such auspicious days, demand is poised for good growth in 2023. Price pressures could keep rural demand subdued. Urban buying and digital gold accumulations which permit flexible low-ticket sizes could be emerging stories during this festive season.” 

In general WGC is not focussing much on gold price trend and gold price outlook. In the perspective Colin Shah, MD, Kama Jewelry expressed as an expert on gold prices hitting Rs 60,000/10gm level.  He said, “Gold prices have risen almost 7-8% in the past month.  

The rally in the yellow metal is primarily due to the banking crisis in the west. The liquidity infused by the central banks and the expectations of lower to no rate hikes is pushing gold prices up. Gold is a safe haven, historically it has gained in periods of uncertainty.  

Gold prices hitting a fresh high is a sign of slower economic growth and lower interest rates with ample liquidity to help the system steer of the current situation. The current situation globally may take some time to clear out. Globally, central banks have been adding gold reserves.  

The onset of the festive season in India starting from Gudi Padva will support demand at the retail level. We expect gold to gain further and touch new highs in the next few months. Domestically, it is expected to trade in the range of Rs 61,000-62,000/ 10gm. internationally, it may scale levels of $2,050-2100/oz.”  

Even if the gold price is rocking and support for higher gold price, Aditya Pethe, Director, WHP Jewellers suggest, “Gold is considered a safe haven and has shown steady appreciation over the years. The recent burst in prices can be attributed to financial uncertainties in the US financial markets, caused by liquidity crises in big banks like SVB and Credit Suisse. Whenever there is a crisis or uncertainty, people tend to move towards gold as a reliable investment.”