Buying gold this Dhanteras? Check latest price and future outlook

Dhanteras, marking the start of Diwali, is a time when many Indians purchase gold as a symbol of prosperity and good fortune. Celebrated just before the main Diwali festival, Dhanteras is considered an auspicious occasion for buying gold in various forms, whether jewellery, coins, or bars.
The tradition is believed to bring wealth and blessings, and the metal holds a deep cultural significance in Indian households. This year, as Dhanteras approaches, gold remains a popular choice for investment, with its appeal as a safe, stable asset.
In 2024, the factors impacting gold prices are varied, including global market shifts, geopolitical situations, and interest rate changes. Despite these influences, gold’s value has stayed strong, offering consistent returns for investors even in challenging economic conditions. Here is an overview of current gold prices and insights into the future outlook for this festive season.
Both gold and silver prices rose on the Multi Commodity Exchange (MCX) on Tuesday, October 29, 2024.
Gold futures, set to mature on December 5, 2024, were priced at Rs 78,840 per 10 grams on the MCX, showing a rise of Rs 274 or 0.35% from the previous close of Rs 78,566. Meanwhile, silver futures, also maturing on December 5, 2024, recorded a slight increase of Rs 426 or 0.44%, bringing the price to Rs 97,850 per kg compared to the prior close of Rs 97,424.
Here’s a quick look at the prices for 22-carat gold per gram in some of India’s main cities:
– New Delhi: Rs 7,390
– Mumbai: Rs 7,375
– Kolkata: Rs 7,375
– Chennai: Rs 7,375
“Gold prices experienced a decline at the beginning of the week, down by ₹350 on MCX at ₹78,150 and weakened by $17 in Comex to $2,730, as profit booking emerged amid signs of de-escalation in the Israel-Iran conflict. The absence of major damage to oil and nuclear sites in Israel’s weekend attacks has eased immediate war concerns, reducing the safe-haven demand for gold. Should geopolitical tensions remain subdued, gold’s war premium may continue to fade, with potential tests of $2,700 to $2,680 in the near term,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities
“Traders can start accumulating gold around Rs. 76,500 per 10 grams and can continue accumulating until Rs. 74,800 per 10 grams, aiming for an initial upside target of Rs. 83,000 per 10 grams, followed by a potential rise to Rs. 86,000 per 10 grams. On the other hand, a decisive break below the previous swing low of Rs. 72,300 per 10 grams would weaken the bullish sentiment and could lead to a further decline toward Rs 70,000 per 10 grams,” said a report on gold from Religare.
Gold prices generally see an upward trend during India’s wedding season, which runs from November to February, with an average appreciation of around 4% over the last decade. However, this increase is not solely due to wedding season demand in India, which represents only a small part of the global supply. Gold prices are mainly influenced by broader factors such as US dollar movements, US interest rates, and global stock market trends.
“Over the last 10 years gold has made a sharp bottom between August to October which is seasonally the time when US interest rates and US dollar move upwards. Post that gold tends to rally till December end as the value buying emerges globally and the US dollar seasonally corrects between November and December. Since this period coincides with the Indian wedding season, we usually see gold prices going up. There have been some notable exceptions to this for example in 2020-21 when gold prices actually went down rather than up during the Indian wedding season,” said Amit Goel, Co-Founder and Chief Global Strategist at Pace 360.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)