Citing the past decadal trend, Jateen Trivedi of LKP Securities sees the metal hitting the R20,000/g or R2 lakh/10 grams mark within the next seven to 12 years. Other analysts peg their price rally hopes on the rising changes of geopolitical tension escalating between Iran and Israel and between China and Taiwan. Gold prices are known to rise more when there is a major conflict in any corner of the world or when there is some uncertainty.
But the biggest gold-bulls out there are none other than the leading central banks of the world. According to many global brokerage reports, which see the metal trading at $2700/ounce by December 2024, at least 30% of the price rise this year is attributed to them snapping up the metal, even though gold reserves are no longer the gold standard for central banks.
And as of February 2024, the US had the highest gold holding as the reserves with 8,133.46 tonnes which is 71.3%of the Federal Reserves’ currency chest, Germany (3,352.65 t/70.6), Italy (2,451.84/67.6), China (2,262.5/4.6), and India (822.1/8.9 of which 19 tonne were added in the first quarter of 2024 alone).
Despite prices hitting the rooftop almost every week, according to the World Gold Council, domestic gold demand rose 8% in the first quarter of 2024 to 136.6 tonne. This was supported by a robust economic backdrop and was led by the RBI which bought 19 tonne in Q1 alone as against 16 tonne purchase in the whole of 2023, according to the WGC.