Gold prices see a slight dip in early trading
Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 71,026 per 10 grams and hit an intraday low of Rs 70,988. In the international market, prices hovered around $2,346.05 per ounce. This slight dip in prices may be attributed to profit-taking by investors after the recent surge.
Silver prices show resilience
Meanwhile, silver opened at Rs 81,971 per kg and hit an intraday low of Rs 81,776 on the MCX. In the international market, the price hovered around $27.92 per ounce. Silver prices have shown resilience despite the fluctuations in the market, indicating strong demand for the metal.
Market outlook and expert analysis
Jateen Trivedi, VP Research Analyst, LKP Securities, noted that gold prices continued to rise, reaching 70,900 on the MCX, supported by global Comex prices touching $2350. The ongoing buying of gold by global central banks and geopolitical tensions are key factors supporting the prices. While the overall outlook remains bullish, a correction towards 69,500 may be expected during the week.
Insight into gold and silver performance
Gold has shown Month-to-Date (MTD) growth of 4.78% and Year-to-Date (YTD) growth of 12.20%, while silver has seen MTD growth of 9.10% and YTD growth of 10.00%. Physical gold is currently priced at 71,300, and silver at 82,500.
Consumer behavior and market trends
Sachin Jain, Regional CEO, India, World Gold Council, highlighted the impact of historic high gold prices on consumer behavior, leading to subdued jewellery demand in the first quarter. However, with the onset of festive season in April, consumer purchases are expected to increase, driven by cultural affinity towards gold during auspicious occasions.
Factors influencing gold demand
Indian households have a strong attachment to gold during festivals, enhancing the positivity around these events through token purchases. The upcoming festive season with festivals like Gudi Padwa, Ugadi, Chaitra Navratri, and Ramzan Eid is likely to boost gold demand. Increased consumer interest and pre-festival bookings indicate a positive trend in the market.
Expectations for the near future
Despite potential moderation in gold prices, subdued jewellery demand may persist during the general election period in the next two months. However, higher prices could lead to increased investments in gold-linked digital and investment products, offering alternative avenues for gold enthusiasts.
