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
You people can check reports, SDPI people involved in many RSS workers' murder. They didnt get proper punishmnet
How BJP became communal..! BJP stands for patriotism. SDPI people working for conversion of people and making issues. That party should be banned fully.
Shame mr. rai. You only making the situation more complicated. By terming 'communal hub', you are injecting fear to common people.
BJP, SDPI both are communal they agreed. Should add more. BD, PFI etc
Dear Mr. Rai, with due respect, you and your party before flagging off the rally must answer the following questions to the general public!
1) you and your party won many times and even ruled undivided DK District but, why have you failed to controll the RSS and its hate campaign aginst a particular community???
2) During the last assemble election you have made public that once you got elected, you will send prabahkar bhat to jail! what action have you taken??
3) your own party worker late mr. Jaleel karopadi murdered by RSS Goons, what action and justice you have done to his father? who openly cried for justice and in anger he critisized you for failing to provide him justice!
4) under your constituency there were many muslim leaders and activists murder happend were were you that time?
5) the national tragedy of Babri masjid was demolished under congress rule and your national leadership maintained the soft hindutva, why have your party failed to protect it ..?
6) your national leadership had once said we will give justice to muslim community, and will rebuild babri masjid, being in a power for more than 10 years why your party couldnt provide the justice to the victims??? 7) your party have appointed the sri krishna commission! what action your party implimented against the hindutva brigade??
8) you and your party claims that, we are the protector of minority community! what protection you and your party provided for indian muslims?? since 70 years they have been looted, burnt alive, raped,tortured, made refugees, made scape-goat as terrors, etc etc ???
during all those time indian muslims dedicated their trust on all the so called secular partys, but all of them ditched to the community and maintained soft hindutva!
The anger, Disappointment, Frustration, and the Thawakkul on allah made to born SDPI on indian soil..!! that is the reality, that nobody cannot deny!!
Your Failure is SDPI's Stength, and SDPI's Success is indian oppressed community's success..!!
Add new comment