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."
Mahesh S Patil, the judge of second additional civil court and JMFC, Managluru, ruled that Mr Uchil should be given a compensation of Rs 50,000 along with interest at the rate of 9% per annum from the date of suit till the actual payment towards damages.
Comments
Dear Abdulraheem Uchil,
Hope these messages, will contribute you a major change in your life as a TRUE MUSLIM.
At least now you have to change yourself for sake of your own.
All community people will love you, if you truly learn and change.
Allau is Gafoor Al Raheem. He accepts sincere apologies and Tauba
I really respect for the word what he said is
About the interest being Muslim !!!
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear Mr Rahim,
Congrats on winning the law suit.
In my opinion, you dont have to listen to the negative comments, especially to that of you receive from bearies. It doesn't matter which political party you belong to, as long as you do good service to the society.
They advise you on how to be 'true muslim'. 'True muslim' tag is not 'universal'. Till today nobody can unambiguously/univocally/indisputably define 'true muslim/islam'. We have 100s of parties in Islam. Each party considers themselves as 'true muslims'. This confusion will never ever be cleared until end of this world. Even terrorist claim they are 'true muslims'.
So, please continue your good works sir. By good works I mean moral/ethical and socially beneficial works, which are independent of any religion. Good is good. Bad is bad. No need any religious tags/support for it.
Thanks for valuable suggestions,(positive and negative comments )
What a joke Rahim!!! From which jungle these so called politician are coming from... Redicolous
Only in front of Media he is telling that he is not accepting interest. The real matter is entirely different. If he is a true Muslim he never join facist party like BJP. If he take interest or leave interest what is the difference....??? for him.
Dear Raheem Bhai,
If you are a true muslim then you should not accept even 50,000/ rupees . Because it is not that your hard earned money. Being a true muslim atleast you should donate this money to some charitable organization such as Old home , disabled children center or orphanage , then only you can say you are a true muslim.
Ra(hi)m Uchila, you cannot be a true muslim by not accepting interest, you have to learn and practice Islam to be come Muslim.
example for the man kind, best of rahim uchila \Being a ‘true Muslim’ I cannot accept interest,” he said."
By the way, what was the actual allegation? Can you please publish that defamatory article here ? :p
Rahim uchil shirt color and pose super
Just avoiding interest will not make a person true Muslim. A Muslim has to set example by practicing all teachings of Islam in life, so that even Non-Muslim be attracted.
Add new comment