Gold prices fall on weak spot demand: Is this the right time to invest? – CNBC TV18
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Globally, gold prices gained momentum despite the dip in domestic futures.
Gold futures in New York rose by 0.64%, reaching $2,718.84 per ounce.
Analysts linked the dip in local prices to subdued spot demand but highlighted that global cues remain supportive of gold’s upward trajectory.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), emphasised that gold prices are being driven by recent US inflation data.
“The US Consumer Price Index (CPI) rose from 2.6% to 2.7% in November, aligning with market expectations for a rate cut by the Federal Reserve next week. This disinflationary trend is bolstering gold’s appeal as an investment haven,” Kothari said.
Renisha Chainani, Head of Research at Augmont – Gold For All, pointed out that gold has already surpassed the $2,760 per ounce target and is inching closer to its previous high of $2,800 per ounce (approximately ₹80,000 per 10 grams).
“Investor focus will now shift to the Producer Price Index (PPI) and Initial Jobless Claims data, which could further influence the market,” she noted.
Outlook
Analysts predict that gold could breach the ₹80,000 per 10 grams mark in the near term, driven by continued disinflation, potential interest rate cuts, and geopolitical uncertainties.
“Gold prices are likely to maintain an upward momentum if global economic conditions remain supportive,” Chainani added.
Should you invest in gold now?
For Indian investors, gold continues to be a reliable asset for wealth preservation amid economic volatility.
Experts recommend a diversified approach, with gold serving as a hedge against inflation and currency fluctuations.
“Investors can consider gold-backed ETFs or sovereign gold bonds for long-term gains,” said Kothari.
He also suggested keeping an eye on global market developments and using dips like today’s as entry points.
