Gold prices are expected to surge to Rs 65000-67000 per 10 gm in long-term.
The coronavirus pandemic, on one hand, led to a fall in gold and silver jewellery demand but on the other hand, it has wooed the investors towards investing in bullion. The sharp on-year rise in the price of gold and silver compared to last year is expected to attract investors this year, the Confederation of All India Traders (CAIT) today said. While there is a fall in people’s purchasing power due to the disruptions led by the pandemic, rising prices of gold and silver may bring huge investment to the markets this year as always, CAIT President B C Bhartia said in a statement. Gold prices are expected to surge to Rs 65000-67000 per 10 gm in long-term, showed a report by Motilal Oswal Financial Services.
A significant price rally is witnessed this year, triggered by the uncertainties hovering in the market, the impact of the pandemic and also a depreciating rupee. Gold and silver will be the first choice of investors, for which bullion markets have also made preparations and varietals are available for customers in every range, B C Bhartia added.
As the US presidential elections have come to an end, the next few months are considered to be important to define gold’s short to the medium-term trajectory. RBI’s stance, low-interest rates and yields, the spillover effect of excess liquidity in the market, the impact of the pandemic and other concerns could set a perfect picture for a gold rally in the long term, Motilal Oswal report added.
In the year 2020, gold touched an all-time high. A massive 40 per cent return in just half year supported by strong fundamentals gave a boost to the attractiveness of the metal for investors. Meanwhile, gold in India has given a return of 159 per cent in the last decade. To put it in perspective, Dow Jones has given around 154 per cent and the Nifty 50 has given 93 per cent returns in the same period, which makes gold a star performer, the report underlined.