The fourth tranche of SGB in this financial year is available for subscription from February 12 to 16. Investors will have to pay ₹6,213 per gram of gold after a discount of ₹50 per gram for digital payments. This is ₹64 per gram higher than the price during the third tranche they paid in December 2023 (₹6,149).
Analysts believe the price of gold could be range bound in the near term with a downward bias as investors wait and watch for when and how many times the US central bank will cut rates in 2024. However, the price will be supported by central banks that have been aggressively buying gold and building their reserves.
“Gold is likely to lose some appeal and stay volatile in the near term due to uncertain monetary policy path, but downside will remain limited given the eventuality of rate cuts in 2024 and growing geopolitical unrest,” said Ghazal Jain, fund manager at Quantum Mutual Fund. She believes investors can use this period of consolidation to build their long-term exposure to gold.
Over the last one year, gold has gained 9.02% in rupee terms and 9.16% in dollars. The price surged 11.64% since October 5, 2023, driven by central bank purchasing and mounting investor concern over the Israel-Hamas and Russia-Ukraine conflicts.
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