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
Cheering PAK against india is wrong. But Anyone can celebrate any team. There is no law.
@milan u sound like, terrorism is wrong, but anyone can be terrorists. there is no law. :P
shame on jihadist muslims who back stab our motherland , shameless beggars .kick them out of india or hack them .
How cheering for Pakistan Cricket Team is wrong? Can we then support England team when the British had ruled and looted India for 200 years? There are numerous England supporters in India but no one is against them! Can we support France in football when French had looted and invaded India? Why do Indians support Brazil or France or Germany in FIFA when Indian team is not playing in it? Indians only need to support Kabbadi instead... Come on guys, just keep aside your enemity atleast in sports.. Support whichever team you like..
They should not have celebrated Pak win openly...if at their home does not matter but not openly....their soldiers are killing our innocent soldiers....
Cheering for a team of enemy country, Celebrating the victory of enemy country against our own country is not at all justified. We all Indians should be ONE against such country in any activity. There is hard feeling or soft feeling PERIOD.
Are we going to celebrate victory of Bangladesh against India??? No one does that. Then, why Pakistan???
Some fools are celebrating pakistan victory and saffron b.fools are exaggerating it for political mileage
Its proved many times who z bloody anti nationalists , when rama sena hoisted pakistan flag in Sindagi, Mutalik gang s bomb blast in hubballi court , ABVP s Pakistan zindabad @ JNU and now one more allegation, grow up sangis this style bcom old
Soon after the match many of Indian team players wholeheartedly congratulated Pakistani team and shook hands with them. Are Indian team players also anti-nationals? Do they also face sedition case?
Good point Rajan Shetty. Keep commenting. Silence of nationalists will encourage anti-nationals.
These gandutva guys have a very little heart
Whole cricket team of india should be in jail including gavaskar and gambhir . They congratulated Pakistan and praised them...
Actually the fact is ...this is the result of Media propaganda by RSS since many years ......................they were taunting Muslim youths telling Pakistan which they have no connection and bond is real friend......then simply youths started to anger the Saffronists by supporting pakistan verbally ....but some youth still using the same tactic to anger RSS ...but Rss a anti national organization uses the same to polarize ...unlike RAMA SENE which hoisted Pakistan Flag in Sindhagi ...is out of the talk now ????????????
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