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
Tipu is one of the few freedom fighter who didnt bow his head to British and fought bravely and died in the battlefield. unlike RSS, VHP who bowed their head to be their slave. Now these little puppies have grown up to speak against Tiger of Mysore forgetting his contribution to the indian freedom struggle. Secondly if Tipu had converted hindus into islam by force then there would have been not a single Hindu left in the country now while Hindus make up 80% of Indian population. Foolish people talk without any logic.
Hindu jaya Gosh (gosh of beef)
who is tippu. he is a crimnal. why shold we celebrate his birthday?
If these goons kill Gandhi the person who gave freedom and did ultimate sacrifice for the nation, then how can we expect these goons will talk fairly.
Now Mr. Jain himself is a Jain and not Hindu. He should set an example by denouncing his religion and should join Hinduism.
About Muslims joining Hinduism,
Mr. Jain come for a healthy debate.
If Hinduism proved to be true, all Muslims will join Hinduism.
Like wise if Hinduism proved to be untrue, you first join Islam and ask your people to accept Islam.
They only calls... but no body listen to them.
Wah Re Wah... What a meaningful statements by Mr Jain, the member of non violent community! Thooo nin janmakkishtu
Jihadist and Bajrangi's mentality are same. Both are terrorist. Please just ignore them.
instead of this time waste, do good to the country, help poor family to come up in life.
Tiger-Tippu is being remembered for his bravery.... and entire country is appreciating for his hard work....he is the only king stood against british rule at that time....these chaddies were supporting british....nobody from chaddies fought for our country for our freedom....they should be ashamed of themselves.....
Creating violence in the peaceful society is their birth right!!
Bap Ray Bap what's going on here and there, Mallu
We need thorough research to unearth the historical truth.
Tipu was never a freedom fighter and was fighting only to save himself and like mentioned to convert to islam. It cannot be condoned that others did so can he. What kind of logic is this to support tyranny. So by default we are agreeing to BJP's ghar vapsi. What wrong VHP is doing if Tipu was right in his actions.
None of the royalty was \freedom fighter\".They were fighting for their own glory and power. The poor faceless people who died for the country after 1857 were \"freedom fighters\""
none of these castes and religions belongs to India. Hindu, Christian, Muslim. All this people are developing wide spread hatred among people. In India we were having Dravida origin people. They may have converted to Buddism or jainism but not on any compulsions from out side Indians but due to the intuitions from the times GURUS like mahavir or buddha. Even before that we had aadi dravida culture. With out having the detailed study or finding on the back history, we are spreading hatred on starting from edges of the last point.It is mere nonsense. Tipu sulthan the great may have committed crime as a king. the christians preachers may have converted people to their religion by force or else. At this point of time study and analysis may favour some historical revelations but creating hatred in the name of religion and causing poor people to lead violance is a ploy that every religion at every time played in and around the world. Israel, Arab countries, US, UK, Australia and even in Africa these game plan works and the loosers are always the down troden common public and the profit makers are always the top leaders of the religion as well the politicians. This is the corrupt intolerance
Nobody is with clean hands. Something or the other is done by everybody in general for their survival. If everybody's history is revealed the person will be caught in somewhere in the middle of his life. There is no any such great person who did all good things for others. So stop this hatredness and let's see how to move forward with the country where there are types of religion, race, community, caste, creed and culture. If this comment goes on with UCA then they are also poking their nose in the issue which is not related to them. Kindly if you are not able to do goodness please do not agitate the country. The seed sowing job is done by the communal parties in the year 2002 by demolishing Babri Masjid and massacring thousands of people from a particular religion. Remember. Don't blame the religion. and UCA and BJP/ VHP/ BAJRANG DAL or so called sangh parivars is going against the Karnataka government and the INDIAN Government decision. We would like to thank to the HONORABLE CM OF KARNATAKA and the Congress leaders who has taken rigid decision to commemorate Tippu Sulthan. Tippu never opposed. In fact he used to work with secularism where in his court he was giving equal position to all. Like Poornaiah, and the list goes on. He fought with the British rulers bravely. They only awarded him as THE TIGER OF MYSORE for his bravery. Even English mothers tried to make the child sleep by saying his bravery. So stop blaming UCA. This UCA should not come into picture. They also joined. Ha ha ha ha ha !!!!!!!
Thanks to our Historians. These historians were patronized by ruling elite, to give us wrong history. We were fooled. Ms.Danya Rajendran had tweeted that she knows a family by name 70s. That is, they are descendants of 70 families, in Mysore, whose males were killed by this Great Tipu. During his period, there were JUST TWO temples in his kingdom. This fact is also known after this Tipu Jayanthi celebrations by Govt.
Instead we should celebrate GODSE jayanthi,
pathetic people, need to revise History again to these people!!!!
We never want to celebrate anybody's birthday. Only God knows what is Tippu's situation now as every soul shall die and will be asked with what he did with the life that God has given us...
Aren't they all have any intellect?
If Tippu did not started the War with the British, we would still be the slaves of the British and their chamchas , the cheddis.
Why the stupids want us to believe what they say without learning the history...
Cheddi leaders have tricked very easily many ignorants...Wow there are so many, who doenst use their God given intellect... and they stand with the LIARS... for petty gains...
Dont worry God is with those who are truthful... As a whole evils will perish one day
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