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."
Palaraj, a resident of Kunduru colony, said it was true that he had killed a cow for food. “But, is it right on the part of Bajrang Dal members to beat us black and blue. Is their act justified,” he sought to know.
Comments
Modi govt has failed miserably in protecting minorities rights in the country..
Yours is one of the worst sites I have come across - disabling both Control+v and Control+c etc. Shame on you.
There is a Karnataka Prevention of Cow Slaughter and Cattle Preservation Act, 1964 in force in Karnataka, Section 4 of which lays down: \4. Prohibition of Slaughter of Cow or Calf of She-buffalo:- Not withstanding any law, usage or custom to the contrary, no person shall slaughter or cause to be slaughtered, or offer or cause to be offered for slaughter or otherwise intentionally kill or offer or cause to be offered for killing any cow or calf of she-buffalo.\" The law is framed by Congress government four decades back and is very much in force. As such, what the dalits did was illegal - a crime - for which they are liable to 6 months imprisonment or fine or both. Well, that does not give license to vigilantes of any party or organization to take law into their own hands and beat them up either. The only course was to stop the killing if possible, or seize the slaughtered cow (carcass) etc. and hand over to the police. If the police do not act, then they could agitate in public, etc. So both parties are wrong on this occasion."
NRI PM S ACCHE DIN FOR INDIANS
The day Mr. Narendra Modi became prime minister , all such goondasm raised in our country. Narendra Modi can't talk because these are the part of his mentor (RSS) programmes.
These goons (Bhajrangis) are paid goons of BJP.
Time has come for Daliths and Minorities to stand against these criminals.
This is Karnataka not Gujurat. Strict punishment should be handed out to the perpetrators of such a heinous crime. As per the Constitution people are free to eat what they please. Why should the Bajrang Dal or anyone get offended if anybody eats beef.
BD will get their reward from the devils who inspire them to do such acts... Devils are permanent residence in HELL... it is easy for them to take human to HELL when people encourage EvIL in the society... Evil in the society spreads when People dont Ponder or want to know about the CREATOR of all that exists...
ISLAM says no one will escape of their crime, A day will be there to JUDGE all that happened in this EARTH. and JUSTICE will be done by the CREATOR who created U me and all that exists.
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