Gold Prices Hold Steady as Axis Securities Recommends Continued Investment

Gold prices in India have been steady at between Rs 72,000 to Rs 74,000 across states and cities. The cheapest gold to buy is of 1 gram in 24K, 22K, and 18K. In cities, the price of 1 gram of gold ranges from Rs 5,400 to Rs 7,350.

According to Axis Securities, gold investment remains a preferred choice for investors in June 2024. The brokerage firm suggests that gold prices will continue to rise due to expectations of a rate-cut cycle, increasing geopolitical tensions, central bank purchases, and rising volatility in the equity markets.

Axis Securities notes that gold has outperformed other asset classes since 2022, with prices rising by 14% in INR terms. In the last three months, Gold prices went up by 8%/4%/2% in INR terms and 9%/3%/2% in USD terms.

The brokerage firm believes that gold will continue to have an edge over other asset classes in 2024 due to its inverse relationship with bond yields. Any weakening in yields will have a positive impact on the price of Gold, making it a preferred hedge against other asset classes.