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
muhammad rafique, you cant tell me what i should do . theres nothing like behaving like a muslim. i know what i have done. i am not trying to impress the management or any of the members. i did what was right. i am not against anyone . But, protesting against the college was not an option. i dont want you to fight (if you knew about islam you would also know what violence is haram) .
Thanks for helping me understand that you are a girl student .
dear sister it's better not drag my family members here.
firstly I didnt comment on you personally unless you are Naureen. i still wonder how can someone feel instigated with the phrase "justice for scarf and namaz" '
Mr. Narang kotian, we don’t want your sympathy , don’t pull down Pakistan’s politics to us keep quit.
Mr Rafeeq,
You need not to teach me where to raise my voice and where not. I also have the right to hide my identity (just like you have right to wear hijab). By the way, instead of asking me to show the guts, ask the female members of your family. Mind your tongue while arguing with a girl
why commenting with anonymous identify ? have guts to reveal yourself
why are you silent when cheddi goons have been creating ruckus in the name of moral policing?
give your suggestions to morons like pumpwell, etc
Congrats to Naureen. Muslim girls like you are asset of the nation. Don’t hesitate to go and file complaint against those who issue you threats. They are jihadists. People like them had tried to kill Malala too. I am sure that you will face more threats in future from thirbokis. But believe me, the more threats you receive, the more you become stronger.
Jai Hind
CFI has only these 3 members..! in thier protests, always these 3 people. No other people is there for them. Somehow they managed to get few girls this time for the protests.
I wont believe a muslim father will tell against issue if the intention is true. I believe CFI using that girl and politicising the issue.
Appreciate the courage of Naureen, who braved threats and issued a bold statement. All are with you. Don’t worry. Let the misogynists go to hell.
Mr Rafeeq. First you behave like a Muslim by understanding the issue. What’s the meaning of your question? Whats the meaning of asking justice for scarf & namaz? What happened in Agnes is its internal issue. You need not to send your sister or daughter to this college. Stop giving ur bullshit advices to other girls.
CFI supports only unwanted issues.
Was it too bad than your right wing folks have been spreading hatred against muslims?
Sister Naureen, what is wrong in asking justice for scarf & namaz?
First try to learn what Islam is and behave like a Muslim. Rather being a office bearer of a student council and impress upon the management and others .
Admin of the jihadist whatsapp group 'Justice for Scarf and Namaz' must be arrested immediately. This group is responsible for all the confusion. One of my Muslim friends showed me the conversations in the group. It was too bad
Some students were used by the CFI and some by the college. Please allow the students to lead the life as they wish and concentrate on education. Keep communal hatred away from the campus
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