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."
“Go home and worship your manhood,” he exhorted the Hindu men while addressing a gathering at Jambusar in Bharuch district to induct fresh blood into the saffron outfit on Friday.
Comments
Hindus population could have raised to bit more if Modi, Praveen Togadiya, Mutalik, Sadhvi and other hate mongers could have married.
How our friend in Singapore, is tolerating, when he is branded as IMPOTENT..... When feku Modi is going to take these classes
Go and give your product to Mr. Narahantak Modi first.
Calling hindu men impotent for selling his product. new strategy of marketing...
Calling hindu men are impotent for selling his product....new marketing strategy.. nw wherever he go he will sale his viagra by spitting venom
Muslims has good quality sperm than Hindu, because we believe in one God. If Hindu needs sperm to increase their population, we are ready to supply for free.
Har Ghar main hoga bacha apna
Person who couldn't prove in potency is preaching and marketing his product... he he he
fog out from well
We are already 1.5 Billions....oh my God this stupid is giving wrong idea for hindus....instead he could help securing jobs and education for underprivileged people since their own party BJP is in power.....and is trying to take our country towards ignorance, poverty, illiteracy...
By this kind of speech no improvement will come in to Hindu community but all Hindu girls and women definitely think about the Hindu youths if they are unfit to be with a lady than what is the use of madicine
What a Fantastic Minded man, looks his Brain lost his control, You Bull of the Gate, You need Help to Increase your RSS Population Just a Shout we are here to help, afterword's do not tell \Love Jihad\" once falls Love there is no RSS,Bajji or Ranggi there is Male, Female Master Thogadaia Annanna, Why all these your Counter Partner Master Naraen Gangasara no teach you, we Trained Master Naraen he passed in Distinction level. Do not worry Thogadianna we are here for that, no worries even in Bullet Train or Aeroplane we help you to Produce more and more!!!!!!!!!!
You look like a Watch men in a Appartement, be smart Handsome look then only opposite Gender Love you Master Thogadia, In this stage Looking your Face Like Ugly Baboon no one will not Like you Master, be care otherwise all these Bangali Goons will pick up all go like Gentle Man.
Call us we are awaiting.
Jai Hoo Moidanna
Jai Hoo Hindustan."
IS TOGADIA, the hate monger, Married?
Yaa rabbe... ee report oditt nande nombu poyithaant nakk doubt aayo undu.
Our system is so impotent that Police cannt arrest Togadia. Why? Togadia is against Modi. Deliberately he given dis statement just to harm Namo
This is an attempt by NaMo govt to distract attention of meida from its failure
If impotent Indian media can cover d Charlie Hebdo cartoon or only fight with soft ones i.e Sakhi Maharaj,Togadia,VHP,Bajrang?
Who unable to produce children calls others to make more children who already have enof childrens...! He prepared Indian Viagra for others unfortunately doesnt work for him.
If you have courage marry a women and taste the family life instead of teaching others which is can't do by yourself.
The chemicals in plastic cause male impotence. Plastic water bottles being the biggest source.
It is a huge leap to link a decline in population growth to impotency - what evidence does he have to support such outrageous claims? Chances are that the size of families is being limited by deliberate choice, and not physical fertility problems. Anyone with such a mentality should not be allowed to breed at all!
LOL. Here is another...... But No outrage ?
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