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
Whatever you do, shout, cry, Islam is the fastest growing religion not only in India, also in the whole world.
Only learned and educated people know about Islam.
corrupt brains talk like this so called sadhvi.
Even a 5 year old boys and girls can understand that there is no Beja (intellect) in them... How come the adult elect such kind of Leaders who bring their intellect to compare with the Monkey... Sometimes monkey show how intelligent they are...
She looks like came from BUDWARPET of Pune....anyway she use to give controversial statements for publicity stunt but she can be well known as an prostitute for adithyanath & others but not anything else....
Bondu ijjandina marl ponjo..... now i laugh to this type of idiotic statements this people dont know that islam will be alive till this earth exists........pity on u uncultured people
We need people like (Trump,Sadvi,Thogadia,Batta,) etc...who really advertise ISLAM.
Their Anger,Aggressiveness,Fear about Islam is clearly shown to the World.
After all what can a Creation do in front of their Creator (Almighty Allah)
We can just help you by Praying to Almighty Allah may to shower his blessings on you people .Ameen.
Its difficult because many non-muslims born to muslim fathers. Only their mother can tell their real fathers.
RSS should conduct DNA test, i hope they will find 99% DNA belongs to MUSLIM LEADERS.
1000 SAAL HAIYAASHI KA NATHIJA HAIN
She looks like road side beggar begging for food...who is she?? look at her.. yuck!!
Dear Prachiji,
good idea. 1.But first of stop buying gas, petrol, diesel from these countries. For that you need to research on cow urine to use as alternative or need to start pushpak viman,as always our PM says, Planes are the ideas from Puransas. 2.Stop exporting to these countries. 3. Bring back all the Indians working in these countries. Let us see how it will work. Do you have the plan to do this? 4. call back External PM or boycott him for visiting muslim countries begging for investment.Simply giving the communal statement and enjoying with the wealth of these people is not good for your health. people are realizing their mistake by voting your party.
India should be free from Sadhus and Sadhvis and should be sent to Singapore to share / taste snake and beef dishes with Naren
This is what BJPians foul mouth has to utter when PM is roaming around the word visiting Muslims countries and Christian countries begging them to invest in India. Poor people does not have any Hindu country to visit other than Nepal. They want Petrol from Muslim countries, they want investments from Muslim countries, they want Beef order from Muslim countries. But, they don't want Indians to live in India.
BJP is a party of such radical communals. They are not even aware that if they harm 1, 10 will be harmed by Creator, harm 2000 then 20000 will be harmed by Creator. Creator is the best planner. Do not forget natural disasters where 1000s perished.
Bap ray Bap wa Wa Parchi Deddi you better Tie with Our Gangasara \Narain\"he intends same stupid thinking, mainly you Saffron Criminal goonda Looter leader your mind is very short, Your Dream is very high but If you want leave in this Country your thinking stupidity's you Deedi never and ever get peace always in Hell of life, you Understand First, Vanishing others you might Vanish First remember this world is far away from your thinking, you thought your Cheela go America kneel down to US President, you can dream anything for long/ way distance but do not happy days, You Buffoon's definitely get your own day one or other day Parchi."
This only dream......in future it will be vice versa
Add new comment