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."
Appreciating the work of police, who have arrested four suspects in connection with the murder, RSS Kshetreeya Sanghachalak V Nagaraj said, "If the involvement of PFI and SDPI in a larger conspiracy is proved, we will seek a ban on them from the Centre."
Comments
If RSS and other chillar saffron pillas are banned....then all Muslim based parties will surely back off....try it
..India will be a Better place to live......
if u say to ban SDPI and PFI wht abt the killers who killed more thn 1000's of Muslim & Dalits in india who will ban those who killed this muslims & dalits they are nationlist this RSS VHP ABVP Sangi shld b banned first in india if you ban this guys thn india will b peace country y u all involving kerala in this in kerala they kill for political reason @mohan and @nirmal u mean to ban all the parties in kerala and in india thn only RSS will rule the country no it will never happen everyone hve rights in india dont point others b4 pointing others look into you wht you guys are upto thn point others for ban or anything wht RSS do notice tht firts insted saying to other parites
First RSS should be banned. Then automatically there wont be any problem, coz the root cause of all the hatred is from this organization.
Also Ban Praveen Poojary killers & thier organization like Bajarang dal , VHP , HJV and Gow rakshak sangs ! !
How about RSS involved in various terrorist activity....I am not a member of both parties....but who are these tapaories to ban....
Same way why don't they ask central govt to ban gang, which is involved in killing Udupi Praveen Poojary?
A new TWIST to hide the real CULPRITS who were caught few days back... We all know cheddis evil agenda ... We dont trust them anymore....
How many times you asked centre When RSS members were hacked to death in Kerala . multiple times in a year ........? that means LDF UDF Congress......CPM and other parties should be banned for killing RSS members ?
If it was possible . then long back would have done .......this is GOD's World .....No evil can claim as its own.......Wa jaa'a haqq wa zahakal bathil ...........Falsehood should persih ...as it is bound to perish .......
and remember RSS is not patriotic not Hindu Organization..........and who are you to ask centre ......BJP elected not to control but to maintain a country
cpm and BJP are in open war in kerala and killing each other , never find any wrong on them ... any govt ruled in India since 70 years never find any guilty on RSS , where as most of the reports pointed its direct hands and some times its ideology behind it ...
central govt may hurriedly take action , if anybody approach action against PFI , as they effortlessly working to ban ZAkir naik and his org.. and keen to ban triple talaq.
Ban Also the Killers of
Ghandhi
Dabolkar
Panesar
Karkera
Akhlaq
hahahahahaha, what are these guys upto, they kill their own members and point out other organization.
when go rakshak killed the bjp worker, why did you keep quiet, did u ask govt to ban go rakshak.
This clearly says their intention is communal hatred.
America enlisted RSS in one of the Biggest Terrorist organization. Assam123.com.
The agenda of banning PFI and SDPI already there since RSS is running the central govt. But its hard nuts crack.
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