Kuwait: ‘Diwali Dhamaka – 2019’ marks 10th anniversary of Dhoom Dance Group

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."

Gadag, Mar 28: At a time when the adminsitration is insisting on social diatancing due to COVID-19 outbreak, scores of people gathered in large numbers at an Agricultural Produce Market Committee (APMC) market in Gadag district to buy essential commodities.

Both men and women could be seen standing in large groups near the vendors to buy fruits and vegetables. Some of the customers were also heard bargaining with the sellers in the morning today.

A couple of days back, Prime Minister Narendra Modi emphasised that social distancing is the only way to counter the spread of COVID-19, saying the virus does not discriminate and it can infect anyone.

Interacting with the people of Varanasi through video conferencing, the Prime Minister had stated that some people, despite being empowered with knowledge, are not pay heed to warning which is unfortunate.

He said the 'Mahabharata' war was won in 18 days and the war against coronavirus will take 21 days and the aim is to win it.

According to the Union Health Ministry, there are 873 confirmed cases of COVID-19 in India.

Kalaburagi, Mar 25: Three coronavirus suspect persons who did not stay home during their mandatory 14-day quarantine period had first information report (FIRs) booked against them in police stations in Kalaburagi town in Karnataka.   

The district administration took this action after it came to know that the three pesons were mingling in the public despite being told to stay home to avoid passing on the coronavirus.

Cases have been booked against them under IPC sections 188 and 271, deputy commissioner B Sharath said.

Stringent action would be taken against them, he said, for not only threatening the health of their family members but society at large.

“The administration will stop at nothing to safeguard public health in this time of emergency,” Sharath said.

People moving around on motorbikes without a proper reason will have their bikes seized. Prohibitory order under Section 144 of CrPC will remain in force until further orders, he said.