Gold prices saw a 0.46% rise, ending at 62735, mostly due to worries about the deteriorating job market in the United States. ADP (NASDAQ:ADP) reported that the private sector added 107,000 jobs in January 2024, less than the predicted 148,000.
The unsatisfactory job growth in conjunction with the ongoing relaxation of wage pressures may help to keep inflation under control. This economic environment has contributed to the appeal of gold as a safe-haven investment.
The World Gold Council (WGC) predicts that lower jewellery sales will be the primary cause of India’s muted gold demand in the first quarter of 2024.
But as consumers get used to the higher prices, annual demand is predicted to increase.
The analysis projects that in 2024, India’s gold demand could rise to between 800 and 900 metric tonnes, breaking out from the historical range of 700 to 800 metric tonnes.
India’s demand for gold dropped by 3% in 2023 to 747.5 tonnes. The lowest level since 2020 as a result of record-high prices that curtailed demand for jewellery. With over-the-counter (OTC) trading excluded, global gold demand decreased by 5% in 2023 to 4,448.4 metric tonnes.
Because of the geopolitical and economic uncertainties. It continued to be strong despite the decline when compared to the 10-year average.
Technically, the gold market shows new buying as open interest increased by 5.12% to settle at 15369. Currently, 62480 provides support for gold prices, and a breach below could push it as high as 62225.
Resistance on the upside is probably at 62925, and a move above there might take the price to 63115.