Gold prices in India are expected to hit a new high of Rs 70,000, according to a report from ICICI Direct. Silver prices are also likely to rise towards Rs 85,000, supported by increasing industrial demand.
The rise in gold prices is attributed to a weak dollar and a decrease in US treasury yields. The dollar and yields have fallen due to expectations that the US Federal Reserve will start reducing interest rates by March 2024. Concerns about slower global economic growth and geopolitical tensions in the Middle East are making gold a valuable hedge against uncertainties.
Central banks are expected to continue buying gold, diversifying their reserves. The report suggests that crude oil prices will face obstacles near $90 due to weaker demand. Crude oil is anticipated to stay in the range of $60-$90, as it is unlikely that OPEC will extend voluntary output cuts, coupled with increased production in non-OPEC countries. Global oil demand growth may slow down due to economic growth uncertainties.
Despite potential dips in oil prices, escalating tensions in the Middle East may prevent them from falling below $60. The report also forecasts a possible dip in MCX crude oil prices to around Rs 5,000 in the coming month.
