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
\Hindutva activists raid Thomas School...\" is wrong caption
It should be, \"Hindutva Goondas Attack Thomas school ....."
Why you call these raid, Raid can only be done by government servants.
This is called Gondagiri, what the hell police is doing, arrest them.
I think as per this English should be banned as the language belongs to England.
If learning or teaching was illegal they would've spoke to the head master, or filed a case against the school.
For muslims ARABIC is first language, its the mother of all language.
hahaha look at their face and their dressing style! Their presence itself shows they are uneducated goons.. Hardly one or two guys may be passed 7th standard. All poor hindu guys are running up and down in search of arabic classes and gowmootra.. Upper class are enjoying every position in all indutries.. Poor guys.. Lage Raho..
Hi all the people of Mangalore,
Who r these people who haven't seen the steps of school and wanna dictate what is to be taught and what not? There are education boards set up for all these purposes. Where is Mangalore heading? Who has brainwashed these people? First those people should be acted as per law who leads such goons irrespective of religion? How can U expect a place to develop when U don't have a mindset for broader vision and tolerance? Anyone who speaks against some party becomes Anti national!!!
V r giving more important to Cows than Humans. If people of Mangalore unite at such circumstances, then law cannot be taken into hands by any groups, irrespective of religion. It's high time that we unite against such shameful acts.
Expats including non-muslims in gulf countries would have craved for knowing Arabic in their childhood because they know that they can have edge over others and would have got better pay in gulf. These people do not understand this. They are struck with some bad mindset which makes them to oppose anything associated with Muslims. It is difficult to learn a language later in life especially Arabic.
Uneducated goons don't know the value of languages..... moreover why sanskritbis taught in school....
Go maataas are in need of these sons in Gujarat where dalits stopped work.....go and serve the Go.......let's see how many patriots nationals from chaddi Canara sena will go....
Saffron TERRORISTS, not activists.
Many non muslim working in ARAB AND ISLAM Country for job purpose they have to learn ARABIC language and also english is foreign language are going to stop english language in school or in colleges this SRS are un educated so they fight ....
Arabic is an international laungage spoke widely in many countries. There are many million Christians , jews and other non Muslims for whom Arabic is mother tongue. In every gulf countries lakhs of non Muslim join Arabic language courses to get promotion in their jobs. In Kerala there are non Muslim Arabic teachers. These narrow minded uneducated ravan sena are defaming our district and country by their criminal acts. Law should take stern action against these anti social elements
Nayig yenchina gottu Limbeda uppad
These SRS goondas should know that, it was not compulsory.... Those who do not want to learn, they are free to keep away.... so, what is the issue ????? Look at the Words , that are taught, which are useful in daily life... like bank, airport, box, gooda angadi.... these are useful to those work in Gulf.... Bopanna KSA can throw some light on this issue.... Those who are interested , let them learn, others can SHUT UP...
RSS IS ONLY GOOD FOR THESE TYPES OF THINGS...
LET THEM SAVE THEIR MATHA COW IN ROAD FIRST...
should have banged arabic preacher :
these teachers dont have any other work, small children hardly study their 6 subject... in between arabic and other language to their head.
this unpaid shiva sena activists dont know the value of learning new things.
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