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."
Comments
MLA Shakuntala Shetty was in RSS and was BJP MLA for a long time. Her blood is contaminated with RSS/BJP venom and still it survived with her. That's the reason she opposes AB Ibrahim name in the invitation letter, that was diktat of VHP/RSS of Puttur. As an Administrator for Mahabaleshwar Temple, DC name has come. No fault with AB Ibrahim.
I remember, some years back, there was rift in Jamiya Masjid, Udipi, that case was before the High Court of Karnataka. High court of Karnataka issued interim order, appointed Mr. Ashwat Narayan Gowda, ASST. Commissioner of Kundapur Revenue Department as an administrator for this institution. The Wakf Board, and two parties of Jamath did not objected for this appointment, adhered to the court order.
I think DC must stay away from this event, to avoid any un-precedent incident may take by the Saffron Goons. These people have no respect for law and order.
Al Hamdulliah, Mr. Ibrahim, Praise Allah, who protected & skipped you from doing a great sin(sHIRK). All Muslims themselves away such type shirk celebrations.
May Allah Guide us on right path.
Al Hamdulliah, Mr. Ibrahim, do not be sad, you praise Allah, who (Allah) saved you through rival group, away from commiting a biggest sin (Shirk). Muslims should not participate any shirk events. May Allah guied us on right path and protect from any shirk.
It shows how people disrespect the guest.\Atiti Devo Bhava\" preaching religion did 'U' turn. Why did they invite him? I request DC not to attend such non sense festival and waste time. Instead spend more on the sensible works. God bless you."
It shows how people disrespect the guest.\Atiti Devo Bhava\" preaching religion did 'U' turn. Why did they invite him? I request DC not to attend such non sense festival and waste time. Instead spend more on the sensible works. God bless you."
Mr.RAI
You are already Succumbed to VHP after Elected ....as you didnt arrest Kalladka Bhat
Inside chaddi and outside congress....not good...camouflaged.
District Congress leaders started making drama now! I don't think that she need some pressure from VHP to do so! Why only Shakuntala Shetty? There are many in the party having such a dirty communal mindset! Who suffered loss in this game? Not DC Ibrahim. Congress party's true color exposed.
If Congress Party does not take any action about Saku akka, next election we will remove her and choose One of the Great Puttur Secular Congress Leader Hemnatha Shetty kavo, also we r all congress member under to go Hemantha Shetty leadership....
for not only he s muslim, it may be other reason also.
Mr. Rai..let sukka shetty remove his name for god sake. Leave that gentle man alone he is doing some good work for D.K. Nowdays human being of smart city just needs a reason to stage a protest. nowdays no news so they got DC in news.. All knows she is under sanghy mind so she will do wat her sangas teach her.. ITs better to remove his name and be happy.
Kalandar why remove Shakuntala sheety? Rai is also hindu, he also know temple law... Congress is only playing in this issue, you people are also blindly this congress, wait and you will see what happened is.
Please invite Mr.Mujahid Balusheri so that he can teach what Islaam is ?What will be their fate life after death? why idol worship is not allowed etc.. to the Innocent people of Puttur. Rather inviting D.C. Mainly we support the Ms.Shetty for her proposal of removing D.C Name bec of her D.C is saved from SIN. Alhumdulillah.
Mr Rai please remove her from Congress party, she is not secular MLA,
Add new comment