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
RIKAZ,
Already done, i have done my computer course.
And what do you think, how i am replying to you, its through computer.
Satyameva jayate.
You have a sick mind. Just read what you have written.
I dont think you will understand anything if i reply.
If you are so concerned about kashmir or china, pls go ahead and do it yourself dont give advise to others.
PONDER, have u read properly, now here it is,
Rigveda 10/85/13- cows are slaughterd.. is misconception. The actual meaning is The word used for sun-rays is \GO\" which also means cow and hence a mantra can also be translated by making 'COW\" and not sun-rays as subject.the word WEAKENED is \"Hanyate\" which can also mean killing. The mantra states the rays get weakened in winter and get strong again in spring. How can cow that get killed in winter gain strength in spring. This proves that the reader of the vedas should have good intelligence and wisdom to understand. Otherwise people will misunderstand just like you did. Same for all other points you mentioned."
SURESH U need to do some homework, not to reply but to UNDERSTAND... please go thru below verses from your scriptures specially the last one.
Maharishi Yagyavalkya says in Shapath Brahmin (3/1/2/21) that : I EAT BEEF cos it is very soft and delicious.
Apastamb Grihsutram (1/3/10) says : The COW should be slaughtered on the arrival of Guest, on the occasion of Shraddha of ancestors and on the occasion of Marriage.
RIGVEDA (10/85/13) declares On the occasion of a girl's marriage Oxen and COWS are Slaughtered
RIGVED (6/17/1) STATES the INDRA used to EAT the meat of COW, calf, horse and buffalo.
Vashista Dharmasutra (11/34) writes, If a BRAHMIN refuses to EAT a meat offered to him on the occasion of SHRADDHA or worship HE GOES to HELL>
Suresh, you need to learn some logic.....I suggest you to join some computer programming course....
Suresh........how many cows you have at home...as per your comments also send some cows to borders of Kashmir and China...some to clean gangas and others RSS bhakta to bring go moorhra to wash their sick minds......
Which century are you living in......and where did you get your GO history from...
Rikaz,
What i have mentioned one full paragraph is fact.
what you are saying is called illusion (maya)
You will never understand that.
Just like a blind cannot see the world around him, same way you cannot understand Maya (illusion) ignorance. You have to rise high from Kg class teaching.
Mr. Suresh, its a fact man, you like it or not....I know very well that you know it...but you don't want to admit it.....right....
Rikaz,
Your are a really a funny man and your comments are so immatured.
I dont understand, Whats is wrong and what is supersition.
I am not supporting the beating of people, its wrong,
I was just giving the importance of cow for Hindus.
Suresh, you are still believing in superstition in this 21st century, so sad!
Tell us how many houses have been ruined because of your theory...none...
All rivers were flowing in same place....no body done anything for it....its natures creation.....totally rubbish....
cow is a kind of animals....its not a god...it cannot save itself from any disaster....you and your own people don't care them at all, you will find a lot of them in the road sides like orphans...no one put any grass on it....instead it eats plastic and sometime later dies....reason you don't care them and don't put any food for it....common its your god man treat it nicely....
Once Gautam Maharishi was meditating and a holy cow maya denu entered his abode and started spoiling the rice in his farm. Knowing cow shall not be treated harshly he put the Darba grass on the cow and to his surprise the cow fell dead. The other rishis present said that Gautam maharishi has done a Gau hatya a grave sin. To atone the sin of Go hatya, (killing a sacred cow), he went to Nasik & did severe Tapas to lord Shiva at Trimbakeshwar on advise of other rishis. When lord shiva was pleased with his Tapas, Gautam rishi requested lord shiva to release him from the sin by making the river Ganga flow over the dead cow. Thus Lord shiva diverted the river Ganga to flow over the cow. Thus River Go-davari was born in Nashik and merge with bay of bengal.
Cow is so holy that, if you build your house on the plot of land where cows put their holy feet for grazing, or where there was a cow shed, building a house in such a plot is very very auspicious.
After a house in built the first day of house warming cermony a holy cow is first made to enter the house in this way all the evil and negative energy in the newly built house is cleared off.
If a person is suffering badly in health or work front they are advised to feed cows, by doing this the creator is satisfied and he relieves the person from his sufferings.
Cow- urine or Go-mutra is so auspicious that if you sprinkle it on the possessed people, or inauspicious places where there is negative energies accumulated, the place becomes pure and positive again.
1857 first war of Independence broke out - cow was the reason.
This cow story made citizens sick and tired....there is no god in cow or any animal kind....what the hell these vigilantes doing around....if dalits want to live peacefully they should convert to Islam....that is where they get their due respect from society....In Islam there wont be any upper caste and lower caste....they will be treated properly with respect in the society....
Its a BIG INSULT to the PM ...
Cheddi gangs ignored .... him badly.
The PM should show his power to stop it rather than saying killing me before killing the dalits...
He said, Fake Gau Rakshaks are dividing the nation,
Then what the real Gau Rakshaks are doing??????
He further says, \Hit me and do not hit Dalits\", means he can not control those who want to HIT????
Why is he concerned about Dalits when other communities also have been terrorized by so called Gau Rakshaks? Others are not humans or Indians? Or he is only concerned about \"Vote Bank\"???"
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