'Gold price may touch ₹72,000 per 10 gm in 2024'

livemint.com:

Gold price outlook 2024: As we welcome the dawn of 2024, the outlook for gold appears promising, poised to be shaped by a complex interplay of several variables. One pivotal determinant of gold prices in the coming year will be the monetary policies enacted by major central banks, notably the US Federal Reserve. Alongside this, the geopolitical landscape, trends in the dollar index, global growth momentum, uncertainty stemming from elections in major economies, and the ongoing gold acquisition spree by central banks will collectively shape the path of gold.

Building on a robust performance with returns of around 15% in 2023, gold is positioned to sustain its allure in 2024 within the intricate macroeconomic environment. The US Federal Reserve has pivoted its policy stance, signalling the conclusion of its most aggressive rate-hike program. With inflation showing signs of significant moderation, the central bank is expected to embark on a path of rate cuts in 2024, with three reductions anticipated throughout the year.

Markets are already factoring in a potential rate cut as early as March 2024. This shift could exert downward pressure on the dollar index, leading to a further decline in US bond yields, thus bolstering the overall outlook for gold. According to the IMF, global economic growth is poised to decelerate due to the assertive rate hikes by key central banks since 2022.

This scenario favors increased allocation towards gold as a reliable store of value. The enduring interest in gold is expected to persist, particularly in the event of any escalation in Middle Eastern tensions, further enhancing gold's appeal as a safe-haven asset. Central banks have been consistently buying gold over the past 13 years,