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
I agree with you but, if something happens to her family by these hoodlums, it will be a huge news, not only Karnataka will lose credibility, but these hoodlums will gain reputation and notoriety, which would be very unfortunately.
It would mean that Karnataka has fallen to a level of dystopia. international news, will have field day adding bad repo to our nation.
All life be it farmer, beggar or star has to be protected as citizens..
Actually the best way would be to arrest the people starting such campaign’s and issuing bounty’s.
And what about the police, law and order, constitution?
The movie glorifies Rajputs, there bravery and Valery is highlighted.
there is not even a single frame shared by both the actors.
And India currently has bigger issues than this to be tackled
Dear Gopal, "no offence but If you do some research before putting forth such statement
you will find out that this is a real issue
- here is a link from Hindustan time also for your reference
http://www.hindustantimes.com/india-news/padmavati-row-haryana-bjp-leader-announces-rs-10-crore-reward-for-beheading-deepika-padukone-bhansali/story-SNu3xwOyMQmJU3fNzbSVyL.html
First of all this is extremely wrong from an elected individual, its not from a teacher
scholar etc it is from Haryana’s BJP chief media coordinator Suraj Pal..
It appears to be a diversion tactic,
so that focus is changed from actual issues.
Padmavati producer includes Viacom company which is owned by Mukesh amabani.
Now first of all this action done by this representative - is wrong lets agree to it.
As for fatwa ( not patwa) let me enlithen you. Fatwa means opinion in arabic language , So if you have an opinion it can also be called as your fawa in arabic…
Lastly there has always been a huge cry on any fatwa’s issued, I am surprised your comment meant that this fatwa went unnoticed.
But generally this fatwas are given by idiots who don’t have any bite but only barks
whear as if a d&* is capable of biting then precautions have to be taken for protection of the intimidated individual."please think with open mind and without color glasses, there is no need to polorasie everything
DKS, please check what is happening with poor farmers. Deepika is celebrity & she can afford security. When she has not asked for security, why the hell r u bothered. There is no better work these politicians just to show up in media & become HERO. Y is karnataka govt bothered? she is all time in Mumbai. Let her shell out money & get security. Why tax payers money is wasted for such celebrity who loot public by displaying movie and cinemas. JAGO JANTHA JAGO !
I understand films have been made in the past based on Padmini. Kamonar Agun or Flames of Flesh (1930), Maharani Padmini (1964) in Hindi, Chittoor Rani Padmini (1963) in Tamil starring Sivaji Ganesan and Vyjayanthimala. Wonder how these stories were told ! Surely Bhansali would have glamourised it, going by his past ventures !
At this rate, we will have curbs of freedom of speech and we will all need police protection. Wonder what is happening to the sense and sensibilities of our people. No tolerance, no patience with 'my way or the highway' attitude. This fanatical attitude will soon destroy the nation!
Who is D K Shivakumar? Is he Judge of supreme court ? what is his jurisdiction? What did he do when his govt was directly responsible for Suicide of honest officer like D K Ravi and DYSP Ganapathi? Shameless people in power
Any difference between bounty and fatwa. leaves me wondering. where are we heading
Hell with film Padmavathi. Karni sena and BJP should intensify protest. VHP, RSS, Sri Rama sena, ABVP should join the protest for ban
Looks like DK already have some clue. So raising protection request. Hope it is not from internal news where they want to do something to say something against BJP. But he never raises concern on Patwa raised by Muslim groups. Strange???
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