By Animesh De New Delhi, November 18 : .Gold prices will rise in near term due to equity market risks and healthy wedding season demand, according analysts.
Due to favorable broader market fundamentals, the gold price has risen steadily in recent months, domestically and globally.
The last gold trade price at the Multi Commodity Exchange of India was Rs 49.159 for 10 gm.
The spot price for pure gold was Rs 49,240 10gm on the Indian Bullion and Jewellers Association.This excludes GST and other making fees.
Anuj Gupta Vice President, IIFL Securities stated that “Demand to buy gold in India with the onset for the marriage season is expected keep its prices high.”
He said that inflationary worries, along with uncertainties in the global equity markets, are favorable for safe havens such as gold.
India currently is the largest importer and user of precious metal.
According to reports, India imports approximately 800-900 tonnes worth of gold each year.
Analysts also see potential overheating of global equities.
Investors may shift towards gold to hedge their portfolios.
Gupta stated that domestic gold prices will fluctuate between Rs 50,000 and 51,000 per 10gm.Global benchmark prices, however, are at $1,890-$1900 an ounce by year’s end with support of $1.840.
Gold futures are currently hovering around $1,850 an ounce in the US.
There are three to four main factors that affect gold.Ajay Kedia from Kedia Advisory, said that gold will be supported by higher liquidity in the US, increased equity and rising Covid-19 cases.
Kedia stated that physical gold will be supported by higher gold investment through exchange traded funds (ETF).
ETF and physical gold are linked and take cues each other.
He said that investors will closely monitor the US Fed’s position on interest rates, and the dollar index.
By year’s end, benchmark gold prices will be $1,900-1,920 an ounce.Kedia stated that gold was far more appealing than any other asset class in the current conditions.
Contact [email protected]
ad-rv/arm #shine #gold #brighter #risks #equity #IANS #Delhi
.
