This Dhanteras, gold down ₹3,000

by Vijay Yadav

Kisna At This Dhanteras

This Dhanteras, gold down ₹3,000 from last year’s level. Good time to buy?

After posting impressive gains over the past few years, the yellow metal has been trading in a narrow range over the past 12 months. gold had reached a record high ₹56,200 in August last year and has been struggling to make gains since then. So this Dhanteras gold prices are trading ₹47,741 per 10 grams, below on MCX futures market ₹50,500 level during Dhanteras Last year.

“Gold outperformed as an asset class in 2020 but lost its luster as economies around the world emerged from the shadow of COVID19. Gold prices are still far from their all-time highs in August 2020. US Dollar depreciation, consolidation concerns, and high vaccination rates have dampened prospects for gold. Going forward, action on liquidity tightening by global central banks, mainly the US Fed, will guide gold prices, “They said Jewelers expect to see strong demand this festive season. Parag Shah, Director, HK Jewels Pvt Ltd, the retail jewelery arm of the renowned Hari Krishna Group, said, “We are seeing an increase in the demand for gold in Tier-II cities. After two years of challenges, customers want to spend and invest in it. Jewellery. We have booked 33% more gold orders in October 2021 as compared to October 2020.”

Some analysts say that a big rally in gold is not expected in the near future.

“Prices remain stable, but major rallies running immediately are unlikely. A firmer US currency, optimistic global economic sentiment, and hopes of easing stimulus measures by central banks have continued to put pressure on safe assets such as gold. Stable equities are also impacting the short-term outlook for the commodity. However, a weak Indian rupee and festive season demand will limit large selling in domestic prices,” said Harish V, Head of Commodities at Geojit Financial Services.

Analysts at Motilal Oswal remain positive on Gold. “We are bullish and continue to maintain a positive bias for gold price over the next 12 months, and expect some directional moves soon as consolidation is extended. Some short term bottlenecks in the current scenario This may give investors a better buying opportunity. We believe gold is likely to bounce back towards $2000 once again and may even create a new life span on Comex. On the domestic front We expect the prices to reach higher levels of Rs 52000-53000 in the next 12 months.”

Recent Posts