Global economic uncertainties and geopolitical tensions are likely to take gold prices to a new high of Rs 70,000 per 10 grams this year, making it a safe haven investment and a perfect hedge against inflation, industry body All India Gem and Jewellery Domestic Council (GJC) said on Tuesday.

"The yellow metal's appeal as a safe haven investment and a perfect hedge against inflation is likely to continue in 2024 as consumers face high commodity prices and elevated interest rates worldwide thus overheating financial markets, GJC chairman Saiyam Mehra said in a statement.

Economic uncertainties and geopolitical tensions suggest a rise in gold prices, which emphasises gold as a vital portfolio hedge during downturns and the prices are likely to see an upsurge of USD 2,300 an ounce or Rs 70,000 per 10 grams in 2024, he said.

"If economic conditions worsen, driving increased demand for defensive assets, gold prices could rise, offering a potential upside beyond all past predictions," he added.

In 2023, gold outperformed other investment products as safe-haven buying triggered by the United States interest rate pause, geopolitical uncertainties, and high inflation amid a global economic slowdown, Mehra noted.

With 13 per cent returns, gold continued to be the most attractive investment option in 2023, he stated.

The precious metal saw uninterrupted buying interest from investors, supported by a recent rally in the equity markets during the Christmas season.

Consumers' appetite was seen throughout the year across all forms of gold products, such as physical, bonds, and paper gold.

"Gold has been a timeless allure for Indian consumers following a similar trend overseas, reaching an all-time high record of Rs 64,460 per 10 grams during this year and outshined other asset classes in 2023. In the international markets, spot gold surpassed the previous record high of USD 2,081 an ounce," Mehra said.

This signifies that consumers' appetite for gold is growing and with continuing the global economic uncertainty the prices will certainly catapult gold to much higher levels in 2024, he added.

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