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
Thank u raj. Wish u all the best in your study and search for truth. May Allah give u hidaya.
I had given link for second answer but it wasnt posted. Check this out https://islamqa.info/en/118698
Or \118698: Consensus that the Earth is round\" in google or islamqa.com"
Mohammed thank u for one answer. According to all religion. The best religion is islam without a doubt. I started studying islam. After eating halal and non halal meat i cooked them both. Non halal meat is hard not that tasty. Halal meat was juicy soft and delicious
Sai baba. Says sab ka maalik ek hain. But people started worshiping him.
Dear Raj, It's not stoning the devil . There is nothing in Islam called stoning the devil. It's called Ramyul Jamarah in Arabic which means throwing the pebbles. This is done to symbolize the three places where Prophet Ibrahim was approached and tempted by Satan to turn away from Allaah's command.
There is no devil there and every Muslim knows that.
Mr. Raj...
By knowing answer to only two questions , do not change your religion...first study know about creator , and think whether you worshipping Him or not ? then try to know which religion presents true qualities of creator , after that you may go for change...
regarding pelting stone , no muslim is worshiping stone as hindu religion..those worship , they never throw stone at them but they pour milk & flower on them with 'aastha'... mena stoning is a symbolic ritual remembering stoning of prophet Abraham (PBUH) to devil , when it prevent Abraham (PBUH) of sacrifice...
Mujahid.
Is the devil stone. Man made. Or who made it.
Mr mujahid.
Quran 79:30. It says he expanded the earth. No where does it says it is egg shaped. I downloaded quran app in english translation.
No translator says so. Where did u get it.
Where is the point ? We are not worshipping that stone, rather its symbolic representation that we follow the commandment of Allah SWT.
Stoning it remembers us the our forefathers, and its strengthen our belief.
Where did you find Islam tels earth is round? U got wrong information.
Quran clearly explain the shape of the earth.
“And the earth, moreover, hath He made egg shaped.”
[Al-Qur’an 79:30]
The Arabic word for egg here is dahaahaa1 which means an ostrich-egg. The shape of an ostrich-egg resembles the geo-spherical shape of the earth. Thus the Qur’an correctly describes the shape of the earth, though the prevalent notion when the Qur’an was revealed was that the earth was flat.
Universe 12.5 billion years ,earth 4.5 billion years,black stone and stoning the devil 1400yrs.How many more years you guys need to get rid of the devil.Please don't get duped by the mullahs and be brain washed,realize, repent,and wash of your sins,follow a dharma that is a way of life and attain moksha.
Its just a stone. Where is the devil. Same as we hindu. Worship stone we think god exists in the stone we created. Tum kare to chamatkar. Hum kare thi balatkaar.
And if u show me earth is round in islam.
If i get a these 2 answers iam ready to convert to islam.
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