Gold to shine brighter
Equity market risks along with healthy demand from wedding season will push gold prices higher in the near-term, analysts said.
New Delhi: Equity market risks along with healthy demand from wedding season will push gold prices higher in the near-term, analysts said. Lately, gold prices, both in domestic and global markets, have risen steadily due to favourable broader market fundamentals. Accordingly, the last traded price of gold at the Multi Commodity Exchange of India (MCX) was Rs 49,159 per 10 gm.
According to the India Bullion and Jewellers Association, the spot prices for pure gold stood at Rs 49,240 per 10 gm in the domestic market, which excludes GST and making charges. Inflationary concerns, coupled with uncertainty in global equity markets are supportive for safe haven products such as gold.
At present, India is a major user and importer of precious metal. In volume terms, the country reportedly imports 800-900 tonnes of gold annually. Besides, analysts see a possible overheating in global equities, because of which investors may move towards gold in order to hedge their portfolios.
Domestic gold prices are expected to move in a range of Rs 50,000-51,000 per 10 gm, while global benchmark prices are seen at $1,890-$1900 per ounce by the end of this year, with a support of $1,840, said Gupta.