Gold Prices At New High On Good Friday; 24-Carat At Rs 68,730, Up Rs 8,730 In FY24; What To Expect?

The financial year FY24 is about to end for gold prices in retail stores across India. So far, FY24 has been fruitful for yellow metal as 24-carat in 10 grams has climbed by more than Rs 8,700, and on Friday, it was another historic high of Rs 68,730. The reason, why yellow metal has been shining, is due to a pause in key fund rates of global central banks throughout the fiscal, while expectations of sooner-than-expected rate cuts fuelled further bulls.

Gold Prices In India, Mumbai On March 29, 2024:

On March 29, during the occasion of Good Friday, the prices of this pristine metal extended to touch a fresh lifetime high. Gold prices in India are the same as in Mumbai.

In 24-carat, 10 grams of gold is priced at a new all-time high of Rs 68,730, up by Rs 1,420 from the previous day. While the 100-gram price jumped by a whopping Rs 14,200 from the previous day to Rs 6,87,300. Moreover, 8-gram and 1 gram of gold have surged by huge Rs 1,136 and Rs 142 to Rs 54,984 and Rs 6,731 respectively.

Under 22-carat, 10 grams of gold jumped by Rs 1,300 to a historic high of Rs 63,000. While 100 grams of gold jumped Rs 13,000 to Rs 6,30,000, 8 grams was up by Rs 1,040 to Rs 50,400, and 1 gram surged by Rs 130 to Rs 6,300 from the previous day.

Meanwhile, in case 18-gram, 10-gram is available at Rs 51,540 up by Rs 1,060 from the previous day. Further, 100-gram jumped by Rs 10,600 to Rs 5,15,400, 8-gram soared by Rs 848 to Rs 41,232, and 1-gram edged higher by Rs 106 to Rs 5,154 from the earlier day.

MCX, Spot Gold Prices:

MCX gold prices with the expiry of April 2024 surged by Rs 123 to Rs 67,800 in 10 grams, while yellow metal in the expiry of June 2024 was marginally up to Rs 67,725 in 10 grams on March 28. Trading in MCX is closed from March 29 to 30th due to the long-weekend including the Good Friday holiday.

Further, in the international market, spot gold stood near its all-time high of $2,235.90 an ounce. On March 28, spot gold ended at $2,233.10 an ounce.

Gold Prices FY24:

So far, gold prices in 24-carat and 22-carat have recorded robust growth in the financial year.

24-carat in 10 grams has skyrocketed by 14.6% or by Rs 8,730 in FY24 so far. The price was around Rs 60,000 by the end of FY23.

Similarly, 22-carat of yellow metal in 10 grams jumped by 14.5% or by Rs 8,000 in FY24 so far. Prices in retail stores will conclude FY24 on March 31.

A little over half of the gains in gold prices came during March month's trading session with focus on US Federal Reserve's dovish comment. FOMC led by chair Jerome Powell continues to expect three rate cuts of 25 basis points each in 2024, however, the trajectory for lowering rates is fewer for 2025.

During rate-cut scenario, non-yielding assets like gold become attractive among overseas investors against other foreign currencies. This is because dollar and bond yields tend to take a slippery slope in the rate-cut scenario.

What to expect ahead?

Jateen Trivedi, VP Research Analyst, at LKP Securities said, "Gold prices were trading higher amidst positive sentiment regarding interest rates, but the rise in the dollar index could exert pressure on gold. Strong resistance is observed around the 2200-2215$ range."

Trivedi added. "In Comex, major support is identified at 2180$, while in MCX, it is at 66000. If Comex gold falls below 2180$, a sharp sell-off towards the 2140-2120$ range may occur, potentially bringing MCX Gold down to 65000 zones."