In 2024, the demand for gold and gold loans is expected to remain strong due to various factors. The performance of gold has been impressive, with a gain of over 12% in the past year. Geopolitical tensions, rate cuts, and concerns over major economies have fueled the demand for gold, and this trend is expected to continue.
Gold is often viewed as a safe-haven asset, especially during times of economic uncertainty. The World Gold Council estimates that central bank demand added 10% to gold’s performance in 2023, and this trend is expected to continue in 2024. Ongoing geopolitical tensions, expectations of rate cuts, and concerns over the health of major economies will likely support gold prices.
In India, the second largest gold-consuming nation, factors such as a weak rupee, firm overseas prices, and steady demand from the physical and jewelry market are expected to push demand for gold. The gold market in India is predicted to have a range of ₹57,500 – ₹65,000 in 2024. The gold loan market in India is also expected to grow, driven by the increasing value of gold and the demand for safe-haven assets. The market is estimated to grow at a rate of 15%-20% annually.
The gold loan sector in India has also seen an increase in the number of fintech companies leveraging advanced technologies like AI and data analytics for improved risk assessment and a streamlined loan approval process. The entry of new players is expected to further accelerate the transformation of the gold loan market.
Overall, the outlook for the gold and gold loan market in 2024 is positive, with rising prices, safe-haven appeal, and increased demand contributing to the growth of the industry.
