Strength in rupee and volatility in the global equity markets may push up demand for gold in 2019, analysts tracking the metal said.
Strength in rupee and volatility in the global equity markets may push up demand for gold in 2019, analysts tracking the metal said. By Diwali, gold may hit 34,000-34,500 level owing to an increased demand, Ajay Kedia, Kedia Commodities told Financial Express Online. Since gold is considered a safe haven, the investors may increase their allocation to it, starting Akshaya Tritiya, he added.
As the wedding season may stretch longer this year as against the last three, the demand for gold may be triggered more, he noted
The demand for gold increased in India in Q4FY19 on account of fall in prices after seeing a slowdown in the earlier part of the quarter, a global report said. The demand increased by 5 per cent at 159 tonnes for the first quarter of the calendar year 2019 as against 151.5 tonnes in the corresponding period of the previous year, the World Gold Council (WGC) report said.
“Other factors including slowdown in the US economy, geopolitical tension, muted returns from the equity market, higher physical buying by central banks are likely to push more investors towards buying the yellow metal,” Ajay Kedia said.
The value of gold demand in the fourth quarter of 2019 was Rs 47,010 crore, a surge of 13 per cent as against Rs 41,680 crore in the corresponding period of last year, it added. Similarly, the total demand for jewellery for the given quarter was higher by 5 per cent at 125.4 tonnes as against 119.2 tonnes in the year ago period, the report noted.
The strength in rupee and drop in local gold prices at the end of the fourth quarter triggered a surge in the demand of gold, Somasundaram PR, Managing Director, India, told The Indian Express.
Meanwhile, the price of gold Friday declined by Rs 150 to Rs 32,470 per 10 gram at the bullion market.