In finance and investment, the yellow metal is the ultimate asset. Revered for its wealth, luxury, history and beauty, your precious metal holds a high value among investors. 24Karat, your go-to place to sell gold, believes individuals invest in gold for long-term growth. Over the years, the market has seen immense growth in the price of gold. Recently, investors have had a question: when will gold hit the milestone of ?2 Lakh per ounce?
As you know, predicting the market depends on many factors. Declaring an exact date for such expectations comes with its challenges. One cannot finalise a date but can predict it by analysing historical data, economic factors, and current trends. Experts and investors can gain valuable insights by understanding market trends and making projections of this yellow metal.
Every household in India treasures gold. Constantly delivering impressive returns, gold has witnessed a significant surge. The first quarter of 2024 saw a surge of 13%, making it one of the top performers.
Before we delve into predicting gold prices, it is necessary to understand the factors influencing them. The concept of demand and supply plays a crucial role in determining the price of gold. Moreover, gold prices are heavily influenced by market conditions, geopolitical risks, economic trends, and sentiments.
The market is not only about how to find gold jewellery buyers in Delhi or sell gold for cash but also involves investor psychology. An investor's sentiments play an essential role in determining fluctuations. Factors like greed, love, fear, and trading drive spikes or dips in gold prices.
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In the financial market, gold is priced in US dollars. Fluctuations in the value of the US dollar have an impact on the price of gold. If you understand the market, the US dollar and gold prices share an inverse relationship. The weaker dollar leads to high gold prices and vice versa. Simply put, it becomes easier for investors to purchase gold when the US dollar is weak.
Fluctuations in the price of gold heavily depend on political and economic turmoil. Political conflicts and geopolitical risks drive the demand for gold. When geopolitical tensions are heightened, investors seek to invest as a safety measure. Investors believe gold and other precious metals are the hedge against geopolitical risk.
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Every economic indicator, from inflation to GDP growth, significantly impacts the demand and supply of gold. During economic uncertainty, investors store gold, driving prices higher.
Gold prices have tripled over the last nine years. Gold prices are sensitive to events like geopolitical tensions, economic crises, and others. Every event, be it COVID-19 or central bank policies, causes the price of gold to fluctuate in the global markets.
Let's just assume gold prices are around ?X per ounce, reflecting a Y% increase. This represents a large appreciation in value to hit the milestone of ?2 Lakh. Jateen Trivedi, VP Research Analyst, suggests that gold might touch ?2 Lakh milestone in the next 7 to 12 years given the market trends. Other experts like Surendra Mehta believe the milestone can be achieved within 6 years. Meanwhile, analysts like Vikram Dhawan suggest that the tripling period might extend to 19 years.
The financial market is unpredictable, and predicting when gold will hit the ?2 Lakh milestone is certainly challenging. The price of gold is driven by a multitude of factors, many of which are unpredictable. Looking backwards, several scenarios can be envisaged. Experts are predicting the future using three scenarios.
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If the market faces economic uncertainty, geopolitical tensions grow, or inflation rises, gold prices can hit the milestone within the next few years.
When the market grows steadily with moderate inflation or geopolitical stability, the price of gold will rise gradually, reaching ?2 Lakh in 7 to 12 years.
If geopolitical tensions ease and economic trends improve, gold prices will face less pressure. This will result in delaying the milestone of ?2 Lakh indefinitely.
Investors and analysts think alike when investing in precious metals like gold and silver. While the question of when gold will hit the milestone captivates the minds, the future trajectory of gold remains uncertain.
After understanding and analysing the factors, current trends provide valuable insights into outcomes. Simply put, investors and households should take a cautious approach to the gold market. Gold offers diversification for your portfolio and serves as a hedge against uncertainty.
So, if you want a best genuine Places to Sell Silver Near Me, contact 24Karat for trusted gold and silver coins buyers Delhi NCR today!
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