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
Look at the Khazi,
I remember back in mid 2000 he was based in BC road or Bantwal somewhere....
MAY ALLAH GUIDE HIM TO THE RIGHT PATH OF ISLAM
Racing to narga.
Race to narga.
Foolish people.
Tussle for power and Money!
These Khazis and Thangals must focus on other issues of the community instead of wasting time in such stupid subjects, Dargha means business nothing else.
@Sini Mol.
It is permitted to enter women into masjid in Islam. In gulf countries there is a separate place devided in the masjid for women to pray. It is common in all the public places that provides women a separate place, like bus seat or in the a
when will Muslims abandon darga which has no place in Islam ?
Haha Fooolish People.. Let the wrath of Allah be on the Grave Worshipers who is not ready to accept the truth.
Allah Messenger (SAWS) you will indeed follow the way sof those you, hand span by hand span, and an arms length after another. Even if they enter the lizards hole,you will follow them. We (the sahaba) asked is it the jews and christians? He replyed who else!.
One more thing
Enklena boka niklena dever de difference ijji. Enkelna dever kulder...Niklena dever Jaider - Unknown
Please ponder!!
@Sini Mol,
For your kind information, Islam not at all prohibited women to enter Masjid. I can quote many hadith about this. Some of the Pseudo Muslims in our country opposing this. They are doing opposite what Islam says. E.g. Women are not allowed
Dear
Believers NEVER despairs, They already KNOW the FITNA (trials) of this ERA... and Most of the MUSLIMS never understand such FITNA unless they FIRMLY GRIP their FAITH in ALLAH. (They will never bow or ask with the dead or to get barakah from the GRAVEs)
BELIEVERS SOLELY believe & Depend on ALLAH alone.... ALLAH is enough for them. May ALLAH include us in that Group.
They already know everything is with the permission of ALLAH, They already know cos the Prophet Muhammad pbuh said that a time will come that the BELIEVER will be very FEW but MUSLIMs will be a lot...
This TUSSLE is for the GOOD... Most of the MUSLIMs understood the POWER OF MONEY. They REALISED Who is working for the MOney and who is working for the FAITH.
RESPeCT the Auliyas the way prophet Muhammad pbuh taught us. Not the way which was never seen in the times of the SAHABAS... and the 3 generations... We might fall into SHIRK (Associating partners with ALLAH) . May ALLAH protect us from falling into SHIRK unknowingly...
Alibaba Chalees chor
I heard that Womens are not allowed to enter the Mosque.But i could see ladies Walking around the Mosque in last Picture.Can any one tell me is there any different in this Mosque.
Im a regular follower of Dr.Zakir Naik where he says in his speech that it is permissible for womens to enter the Mosque to pray with Allah. As Prophet pbuh wife's used to go.But in Kerala Women are not allowed.Muslims follow same Quran then why there is two rules in Islam. Please explain.
Shameless creature.....money speaks....
Look at khazi's face he doesn't like to see their face (Elected Peoples) which means he is not satisfied with them
PRESIDENT FOR CENTER OF SHIRK...????? NAOOZUBILLAH.
Any credibility left with khazi Khoora Thangal?
finally its end, congrats to newly elected president do good development to the dargah.
It is very sad to see that our people worshipping the thieves.
Who is this khazi and other leaders in ullal? All these people are mallus. They dividing the people in Mangalore.
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