Learn with ETMarkets: Spotting trends in gold to latch on buying opportunities
gold in 2024, spotting trends and outlook for gold and silver prices will carry significant weight. One such opportunity has come in the form of recent corrections in bullion.
Buy on dips
The recent nuanced landscape in gold prices, marked by a drop from 64,000 to 61,000, unveils a compelling buying opportunity. Similarly, silver, experiencing a dip from 78,000 to 71,000, presents an attractive entry point for fresh and passive investments.
Global Macros
One should look to capitalise on crises. It can be economic turmoil, war or inflation, as gold is a hedge against market uncertainties.
Fed Action
The driving force behind this market shift is the dovish stance emerging from the Federal Reserve's policy meeting. Federal Reserve Chair Jerome Powell's positive commentary has accentuated the potential for a substantial interest rate cut in 2024. This stance reflects an accommodative approach aimed at bolstering the economy.
Given this backdrop, financial experts recommend maintaining a decent allocation of 15-20% in portfolios, leveraging the current levels as an advantageous entry point for both gold and silver.
Gold Bonds
Investors with a low-risk appetite can buy Sovereign Gold Bonds (SGBs) issued by the RBI on behalf of the government. It stands out as an enticing option. Investors benefit from capital appreciation, a 2.5% interest on the issue price and long-term tax benefits for holding till maturity.
Gold Outlook
While prices may undergo a correction towards Rs 59,000 and Rs 70,000 for gold and silver, respectively, in response to potentially higher Consumer Price Index (CPI) data, the prevailing outlook suggests a commitment to a dovish stance. This bodes well for the overall environment surrounding
