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
Oh Prime Minister! we lived peacefully in mangalore for years together.
for the record it was only your party \dirty politics\" that created problems in our city. all religions live in harmony here. it was so unnessasary to create TERROR in hearts of our fellow people by raising the topic of IS which many across the world know already is a lame group which no human want to belong to. just because kasargod and bhatkal has muslim majority it doesnt mean you have to tagline muslims as terrorist..it hurts our sentiments. much more because WE MUSLIMS ARE NOT USED TO LIARS, FORGET TERRORISM. muslims being quite doesnt mean we agree to all that you say. we just dont want to add fuel to the fire that you politicians have ignited! Remember this: that we YOUTH have nothing to look upto in you politicians..you are never going to be our role models regarding peace and ruling a country in a JUST manner. You can never divide the present YOUTH based on our religion!!! never ever dream of!"
but kasargod and bhatkal people and all mangalorean knows ..
rss vhp are in mangalore city they are virus for mangalore and karnataka...
His face only describes the dangerous villain in movies.
It tooks 70 years to hoist the national flag at Nagpur RSS headquarters.
This is a drama by BJP in the name of Tiranga Yatra to fool the innocent people. Real nationalism and patriotism comes from the heart not from the lips. Amith Shah should visit Srirangapattanam to pay tribute to the real hero of the Independence struggle Tippu Sultan before returning to Delhi. Tippu is the only leader you can find in the history died in the battle field fighting against the British for the country.
Pumpwell, Suratkal and Kalladka also in DK Udupi.
This stupid/ Idiot/Hypocrite LIER does not know that the terrorists , who killed Praveen, Prashant, Harish,Baliga and other school girls are also living in Mangalore, which is between Kasargod and Bhatkal.... What is the knowledge of this LAW MINISTER....
Wow a new topic to FOOL the people...I pity those who still believe their lies on blaming the innocent... After all many times they were caught even bomb making , 2 days back in Kasargod right, cheddis bomb exploded ? The devils are happy when the LIES are spread and that too from leaders of the society.
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