With prices rising from nearly ₹1,500 to ₹54,260 per 10g, people who hoard gold in the form of coins and bars are hesitant to buy the metal, they said.
“Gold has risen massively in price action, rising nearly $60 an ounce in the past two weeks alone to trade around the $1800 levels,” said Colin Shah, chief executive of Mumbai-based Kama Jewellery, blaming the price hike largely on dovish reviews. by the US Fed on its monetary policy. “Looking ahead to December, the metal is likely to extend its recent gains, due to a combination of weaker inflation impressions, weaker economic data points, and chances of the Fed raising interest rates by 50 basis points on December 14,” he said.
According to Shah, $1,850 per troy ounce appears to be the technical level the metal should reach by the end of December, with further interest hikes expected next year to keep investors cautious. “We expect the metal to pull back slightly in mid-December around the Fed announcement.”
Demand for coins and bullion in the first nine months of 2022, at 117.1 tonnes, was 8.83% higher than a year earlier. “Gold price volatility will continue into January,” said Suvankar Sen, managing director of Kolkata-based Senco Gold & Diamonds.
Investment managers, meanwhile, say investing in gold is prudent as prices are still well below the all-time high reached earlier this year.
