Gold prices are showing indications of recovery after a steep fall that followed Donald Trump’s election victory. In the past two trading sessions, the price of gold has increased by up to ₹1,639 per 10 grammes. A halt in the dollar index’s unrelenting rise is mostly responsible for this comeback, which has increased investor interest in the precious metal.

Trends in the Market Right Now

However, gold is trading 5.5 per cent down from its October-end high of $2,790.4 per ounce. According to her, the correction had made domestic gold prices slip from the early November high of ₹80, 000 per 10 grams in Delhi. In the current year, the prices have gone higher when earlier this year it crossed ₹ 81,000. Going by the trend with prices hovering around ₹ 76,000 many buyers, especially the ones who are looking to invest in wedding kanjur buyers are sure to find this as the right time to invest because jewelers are offering discounting.

However, it is still 5.5 per cent below its high of $2,790.4 per ounce reached at the end of October. The correction has reduced the domestic gold prices from the early November levels of Rs 80000 per 10 grams in Delhi. Back in the first half of this year, the price had crossed ₹81,000. The current prices that hover at an average of ₹76,000 are not a bad time as feel many buyers, more so wedding patrons which is a good base for one to invest in given that jewellery establishments have discount offers.

Circumstances Affecting Gold Price

In this paper, the authors investigate the factors that affect gold prices in order to determine whether they are influenced by global or domestic factors. Historically, gold is to a certain extent an inflation hedge and a safe-haven asset but when markets become more robust, the demand, and the price of the metal, go down.

Recent price drops can be attributed to the U.S. dollar which has influenced the prices of stocks in the process. An esteemed dollar decreases the demand for gold by its buyers who trade in other currencies since the price of gold rises. Third, the exchange rate of the rupee to the dollar has a great impact on the gold prices in India since India is a major importer of gold. Generally, the cost of gold has a tendency to go down in India when the rupee gets stronger against other major currencies.

Should You Buy Gold Now?

For Indian investors, it is a good time to enter this market again for those who are planning to buy gold during the festive business related to marriage. Right now is definitely the right time to invest since there are lower prices as well as uptake from jewellers. The only problem that investors may face at the moment is keeping the middle ground. Despite the current prices are relatively low to induce purchase, investors must continue to bear in mind factors including the interest rates policies in the USA, changes in the dollar-naira exchange rate and geo-political conflicts in the global market as they may affect future gold rates.

Kama Jewellery’s MD Colin Shah disclosed that gold prices have depreciated by over six per cent in the global market, and by 3.7 per cent in the domestic market; a perfect buying signal for jewellery consumers especially at this wedding season.

Shah said that due to higher inflation in the USA, the prospect of a rate cut by the US Federal Reserve has been ruled out which puts pressure on gold prices. In most cases, gold performs well in the conditions of low interest rates. Additionally, operations in a strengthening U.S. dollar have also compounded the process of moderate price reduction.

In the short to medium term, Shah believes that gold prices will remain fairly range-bound at the current level. Mr. Woller envisions the price bouncing back to recent highs when geopolitical risks rise and the global central banks such as the Federal Reserve and RBI ease monetary interest rates in the first half of 2025.

Jateen Trivedi, Vice President – Research Analyst, LKP Securities, blamed rising geo-political concerns, especially the ongoing conflict in Russia and Ukraine for resurrecting safe-haven demand for gold. He added that various risks attached to nuclear have led to an increase in gold prices as COMEX gold by $24 to $2,635 and MCX by ₹700.

On the COMEX, Trivedi observed that gold has key resistance at $2,640-$2,650 and support at $2,600-$2,610. For the MCX, ₹76,100–76,300 appears to be significant resistance and ₹75,000–₹75,200 is a crucial support range. Again, Trivedi expects fluctuations in gold prices when changes are occurring in the geopolitics of the world but safe-haven demand will keep prices up in the short term.