By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all

Gold prices are holding up above the critical resistance of $2000 and Silver above $24 due to a pause in rates, recession fear and geopolitical risk. These three factors or three R’s will continue to support bullion prices even in 2024.

• Rates – the transition from rate hikes to rate cuts should benefit bullion.
• Recession – Given the current forecasts of a worldwide market slowdown, precious metals can show their resilience, as witnessed in the last seven US recessions since 1973 and
• Risk – With market uncertainties surrounding geopolitical problems, gold and silver have shown to be a safe asset for shielding portfolios against market shocks.

Strong fundamentals, along with strong technical are expected to take gold prices at least 10% higher from current levels of $2060 (Rs 63000) towards $2250-2300 (Rs 69000-70000) in 2024.

The attractiveness of silver investments stems from its dual nature as an investment and an industrial commodity. Looking ahead, silver’s prospects appear rosy, as the globe shifts toward renewable energy and technology. 5G Technology, Electric Vehicle demand, and Solar panel demand are expected to increase multifold in 2024, and in turn support silver prices to head 20% higher from current prices of $25 (Rs 75000) to $30 (Rs 90000) in 2024.

 

 

 

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