Gold prices in India continue their sharp rally on Friday, November 22, 2024, marking a fifth consecutive winning streak. International gold prices have surged as well. Silver prices in India however stood steady at Rs 92,000 per Kg. The rally is likely to continue in gold prices as global brokerage UBA is the latest to maintain a bullish outlook and expect new highs in 2024.

Gold Prices In India:

24K gold price surged by Rs 8,700 to Rs 7,88,200 in 100 grams and was up by Rs 870 in 10 grams to Rs 78,820. Further, the 22K gold price climbed by Rs 8,000 to Rs 7,22,500 in 100 grams, and up by Rs 800 to Rs 72,250 in 109 grams. Furthermore, the 18K gold price jumped by Rs 6,600 in 100 grams to Rs 5,91,200, and that of 10 grams in the same carat is up by Rs 660 to Rs 59,120 in 10 grams.

24K of 100 grams has surged by a whopping Rs 31,700 in five days of the week.

Silver Prices In India:

Silver price in 1Kg stood at Rs 92,000, while 100 grams and 10 grams silver price at Rs 9,200 and Rs 920 respectively. Moreover, 8 grams and 1 gram of silver are priced at Rs 736 and Rs 92 respectively.

MCX Gold, Silver Prices:

MCX gold with December expiry, surged by Rs 576 or 0.74% to trade at the day’s high of Rs 78,070 per 10 grams. Further, MCX silver with December expiry traded at Rs 90,614 per 1kg, up by Rs 689 or 0.8%, which was near its intraday high of Rs 90,637 per 1 kg.

Spot Gold, US Gold:

Spot gold touched the day’s high of $2,695.55 an ounce, and was up by 1%. Also, US gold futures with December expiry climbed by 1% to hit $2,698.10 an ounce high of the day.

Could Gold Extend Its Rally?

In its latest report, UBS said, “We maintain our bullish gold outlook and expect to see new highs in 2025, though year-on-year gains are likely to be slower than 2024. There is still room for strategic gold allocations to rise and this should keep driving gold prices higher. The market is likely to remain supported by official sector purchases continuing at historically elevated levels and resilient physical demand.”

In the near term, UBS believes there is scope for gold prices to consolidate, albeit with an upside bias to end the year modestly higher than current spot levels, with its end-2024 target at $2700. This would correspond with markets contemplating the macro outlook for the year ahead as we slowly get more insights on what US policies are probably going to look like.

“As we get closer to year-end, thinner volumes as investors become increasingly protective of year-to-date performance as well as the potential for profit-taking could also contribute to some choppy price action,” UBS said.

Big Jump In Gold Prices India, Nov-22: 24K/100 Grams Of Gold Rates Rally Rs 8,700; Silver Stable

Overall, UBS believes that a breather would be healthy for the market in the long run. These lower price levels would bode well for physical buyers, especially as we head into peak demand season in China ahead of the Lunar New Year holidays at the end of January/early February.

The brokerage expects investors as well as the official sector to also take advantage of cheaper gold prices to build positions. There’s probably a bit of room to be more patient and picky on entry levels for now.

UBS new base target for gold is $2,900 in 2025, with an upside target of $3,200 and downside target of $2,000.