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."
District Police Chief Thomson Jose said that he has handed over the complaint to the police station concerned and ordered them to register a case on Wednesday itself.
Comments
True jihadist mentality cropping up ... when one partiocular community population croses 50% , they will start shouting anti india slogan like kashmir .. when they cross 30% , they behave like this ... when their nos less than 15% they say they are secular ... when below 5% .. they claim to peacefull ... % speaks everything ...same thing happened in malaysia too .. when population was 45% , they started behaving like how these thugs are behaving , when they reached 60% , they amended constitution and made islamic democracy ... which is new concept to exceute non muslims .
MR VENKI AND YOGESH.
May God bless u from hell, U donno what u people are doing, keep the ego aside, and come to the true religion, that is islam. Only one religion is acceptable that is islam, only Quran says so, No other book says so.
Even the Coming of Prophet mohammed is mentioned in vedas, even Shri Shri ravi shanker also told and confirmed.
Ravi shanker also knows that Islam is a true religion, but he is scared of rss to accept islam.
This news itself sparks tension between communities.....this is what hate mongers need....and some fools follow....
Mr. Yogesh / Venki / Sangeeth, i think you are not living in this world. Yu are like a frog in the well. You should come out of the well and see this beautifu world. You are followoing hate mongers like Trump/ Sadhvi prachi and Kalla Bhatta. These hate mongers are spreding poison among different religions whereas you cannot find any thing wrong in Zakir Naik speech. You are criticising his speech only because of frustration due to his popularity among people of other religions. You better consult with a good Doctor as you may go mad soon. Too much of jealosy and hatred is not good for your health. Try to be human being first. Learn to respect others so that you will be respected. Dont follow speeches from Hate mongers. God bless you.
Swami is crazy enough to say that Karnataka is his mother and tulu is his fater.....its a stupid to say...
We love Dr.Zakir Naik.Dont listen to the media blindly.Study both the Media as well as Dr.Zakir Naik then come to a conclusion.He will never do such which can defame our Country INDIA.
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