New Delhi, Jun 26: With looming uncertainty and no likelihood of an early economic recovery in sight, the bull run in gold prices is here to stay. Analysts expect domestic futures to touch ₹ 52,000 per 10 grams in the next few months, till Diwali.
Experts also predict that with the current trend, gold may reach historic levels around ₹ 65,000 per 10 grams in two years time.
Futures of the yellow metal have touched new highs in India off late. On Wednesday, the August contract of gold futures on the Multi-Commodity Exchange (MCX) touched an all-time high of Rs 48,589 per 10 grams.
It has, however corrected since and is currently trading at ₹ 48,057 on the MCX, higher by ₹ 116 or 0.24 per cent from its previous close.
Market experts are of the view that both domestic and international gold prices are yet not done breaching records and will touch new highs in days to come.
The resurgence in the number of new cases of coronavirus infection across the globe has added to the uncertainty and fears.
Speaking to media persons, Anuj Gupta, DVP for Commodities and Currencies Research at Angel Broking, noted: "In short term we are expecting it to reach ₹ 48,800-49,000 and for long term, we are expecting ₹ 51,000-Rs 52,000 till Diwali."
On the prices in the international market, he said that it may reach around $1,790 per ounce in the near term from the current levels of $1,762 and the long term, it is likely to be around $1,820-1,850 per ounce.
Gupta noted that with International Monetary Fund's (IMF) latest downward revision of economic outlook, both global and of India, and the rising number of cases and high demand by gold exchange traded funds (ETF) have led to this record breaking rise in gold prices.
Covid-19 battered India's economy is projected to contract by 4.5 per cent this fiscal, according to the IMF and the global output is projected to decline by 4.9 per cent in 2020, 1.9 percentage points below the IMF's April forecast.
Hareesh V, Head of Commodity Research at Geojit Financial Services, said that gold's safe haven appeal will remain on the higher side as there is little hope of a quick global economic recovery amid rising virus cases across the world.
"Increased geopolitical instability and an under-performing dollar also lift the metal's sentiments," he added.
According to Prathamesh Mallya, AVP Research, Non-Agro Commodities & Currencies at Angel Broking, said that with the global output to contract and the economies in a deeper recession than most anticipate, gold as an asset class is a safe bet for investors across the globe.
"Although, the physical demand has declined drastically due to the restrictions and lockdowns, the activity of global central banks and their net purchases of gold signal that uncertainty will continue for most of 2020," he said.
He was also of the view that in the international market price of the metal may move towards $1,850 per ounce and in the domestic market it is likely to move higher towards Rs 50,000 per 10 grams.
"The investment demand as seen in the net additions of ETF holdings also signals that gold will shine for a much longer time even if the pandemic is under control. Till then, keep buying gold, if not in physical form, but in digital form," Mallya added.
Industry insiders like Aditya Pethe, Director, WHP Jewellers said: "I basically feel that the current trend for the gold is bullish and for the coming next 2 years, it is likely to move upwards. No one can predict the exact price as currently the trend is on rise but it might change after 6 months. In general for the coming 6 months to one year, the gold prices are likely to cross $2,000 which comes to roughly Rs 55,000. For a temporary moment it may reduce, basically fluctuate as well but overall trend of gold is going to be bullish."
On his part, Ishu Datwani, Founder, Anmol Jewellers said: "Yes - it's very likely that the gold price could easily go up to Rs 60,000-Rs 65,000 in the next two years. There is also a possibility of it going up even more."
"A lot of banks have been buying gold and there is also a possibility that the Indian rupee will depreciate against the dollar. This and geopolitical reasons will cause bullishness in gold."
“Why should you snatch away the poor's meal?” asked Bhimrao Dhonde, who represents Beed's Ashti, during a discussion on the state's agrarian crisis.
Comments
It is better for government to impose ban on beef as it is not at all good for health.....Moton is a good meat and healthy...
Without distributing the Ambani wealth to poor you cant impose ban on anything. Poor people are suffering because of rich Fadnavi who has easy access to all sort of food. I'm used to mutton now. Even if you allow me to eat beef i wont.
There intention is not to snatch snatch away the meat of export from their leaders.
Beef ban increased beef export. Hence, my guess, the farmers must be selling cows to the exporters. It is very clear that the present administration is anti poor. Election in the corner will woke him up now.
dear avish, the loan burden and no food make the people to sucide. Do you say that the life of cow is more important than the human being? he can sell the cow if he want he can save his parents and family. If not all them should be opt for sucide. So parents sake and family sake he is ready to sell the other things which is not necessary at that moment. But people like you who think that more educated ( not being a human) think another way. It will be understandable only when your are in same situation
Dear Kumel are you educated? how the cow becomes your mother. Please check your DNA. We have never seen even in any holy books that the human being is born by Cow.
Another prime example for dirty politics from BJP since Assembly electioons are on the corner, please do not react or comment
Mr kumel,Who you are to feed 17 cr people. Who is parasitic?.mind your language.
Any action in this regard to be implemented immediately before beef eater communities are used to alternative diet, most of them now used to mutton and chicken, After that if we want sell we will never find anyone to buy it.
I think we have to ask all farmers to bring all their spent cattles to Mr. Kumel Chang house. He will look after these mother cows.
I guess he'd be willing to let go of his parents and family as and when they become nonproductive. What a loser!
So parents are cattle? People like you will use any analogy to stick to your stand. Don't impose your ideas on the rural folks. They know exactly what they are doing and what to do with their life, diet, animals, crops etc. India is a non vegetarian country. Get used to it
If we can feed 17 crore parasitic population of jihadis, surely we can feed the holy mother cow
Very well said, I came from an agricultural family too and they have similar practice. I remember Bangalore in the 80's and the menace of cows roaming on the road. Then the IT boom happened and \ban\" we dont see them anymore and they are now sold as beef."
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