Gold prices in India experienced an uptick on Monday, as reported by data from India’s Multi Commodity Exchange (MCX). The price of gold stood at 71,922 Indian Rupees (INR) per 10 grams, reflecting an increase of INR 254 compared to Friday’s price of INR 71,668 per 10 grams. Similarly, gold futures contracts saw a rise, reaching INR 71,596 per 10 grams from INR 71,256 per 10 grams. Silver futures contracts also witnessed a surge, climbing to INR 91,927 per kilogram from INR 90,548 per kilogram.
This rise in gold prices coincides with geopolitical tensions, particularly highlighted by recent events in Gaza. The Ministry of Health in Gaza reported that at least 35 Palestinians were killed and numerous others injured due to Israeli air attacks on a displaced people’s camp in Rafah on Sunday, according to CNN.
Gold has exhibited remarkable performance this year, with prices increasing by over 16% year-to-date. In May, gold hit a record high of over $2,400 per ounce, according to data from the World Gold Council. Furthermore, economic indicators such as the US Durable Goods Orders rising by 0.7% month-on-month in April and the University of Michigan Consumer Sentiment Index improving to 69.1 in May have also influenced gold prices.
Analysts from UBS have raised their gold price forecast to $2,600 by the end of 2024, while Citi analysts predict that gold could reach $3,000 per ounce within the next six to 18 months.
However, despite bullish forecasts, gold imports to India, the world’s second-largest gold consumer, may decline by nearly a fifth this year. High gold prices are encouraging retail customers to exchange old jewellery for new items, as reported by Reuters.
