Gold price can go up to Rs 68000 in two years
Gold is the only asset class in the uncertain economic scenario, which is showing a boom. The domestic price of gold has reached a record high. Analysts say that gold will continue to boom.
On Wednesday, gold futures on MCX reached a record high of Rs 48,589 per 10 grams. On Thursday, it showed mild softening. Anuj Gupta, DVP (Commodities and Currency Research), Angel Broking, said, “The trend in gold remains positive. Gold will continue to pick up due to geopolitical tensions and IMF’s forecast of the global economy growing negatively.”
The IMF has forecast a major slowdown. It has also said that the recovery in the global economy will be sluggish compared to its estimate of two months ago. It has predicted a 4.9 percent decrease in global production this year and a 3 percent decrease in production in emerging markets. It has also predicted a 4.5 percent decrease in India’s GDP. In April, it had predicted a 1.9 percent increase in India’s GDP. He believes that the corona virus and lockdown are going to have a major impact on the economy.
In the world, the death toll of infection from corona has reached 9.77 lakh. In Brazil and India, cases of infection are still increasing rapidly. The second phase of infection is seen in some countries including America, China. Increasing tensions between India and China have also raised investor concern. They are investing money in a safe medium of investment. Gupta said, “Gold is also getting support due to weakness in dollar index and US bond yield.”
Gupta believes that the environment is favorable for the rise in gold prices. In such a situation, gold can reach Rs 50,0000 to 51,000 per 10 grams in the next one to two months. Its price in the international market is around $ 1772 an ounce. Earlier in October 2012, the gold price reached a record high of $ 1779.
Kishore Narne, associate director and head of commodities and currencies at Motilal Oswal Financial Services, says that in the next one to one and a half years, the price of gold can reach 65000 to 68000 per 10 grams. However, this will depend on a few dollars and rupee exchange rates.