(Consultant picture) NEW DELHI: Gold costs have been ruling at unprecedented highs in India and international bullion markets as traders are preferring secure haven belongings amid financial uncertainty triggered by the Covid-19 pandemic. World Gold Council managing director (India) Somasundaram […]
NEW DELHI: Gold costs have been ruling at unprecedented highs in India and international bullion markets as traders are preferring secure haven belongings amid financial uncertainty triggered by the Covid-19 pandemic.
World Gold Council managing director (India) Somasundaram PR famous that gold value topping Rs 50,000-mark is a key milestone and response is of course combined — glad traders and cautious shoppers.
The home costs are influenced by an interaction of a number of international elements — low or detrimental rates of interest, and turbulence attributable to commerce strife and geo-political tensions, he stated.
Rupee-dollar alternate charge additionally contributed to home value rise, amplified by Covid-19 associated disruptions and a normal sense of insecurity, Somasundaram stated including volatility with an underlying bullish sentiment is to be anticipated as disruptions and uncertainty attributable to the lockdown and fear-induced behaviour proceed.
Will gold costs rise additional?
The gold value is prone to spike additional within the subsequent 12 months following the US elections, Covid-19 associated disruptions and geopolitical tensions, jewelry model PN Gadgil managing director and CEO Saurabh Gadgill stated.
“We predict gold to succeed in round Rs 65,000 per 10 grams within the home market within the subsequent 12 months, whereas hitting $2,500 an oz within the worldwide markets,” he opined.
Why gold is taken into account a secure haven?
Gold which is an integral a part of marriage ceremony ceremonies in India is generally used as a hedge towards inflation and regarded as a secure haven for traders in periods of uncertainties.
“Gold is historically used as a hedge towards inflation, and international economies are contemplating additional stimulus to spice up progress, which can gasoline inflation additional. We count on treasured metals to commerce agency till the variety of international circumstances of Covid-19 is beneath management or a vaccine is launched out there which continues to be a couple of months away,” stated Nish Bhatt, founder and CEO, Millwood Kane Worldwide stated.
Vaibhav Saraf, director, Aisshpra Gems and Jewels, opined that gold has at all times been a secure haven for traders globally.
“Growing worldwide border tensions, commerce wars and Covid-19 are fuelling this progress additional. Demand might be affected within the brief run, however as soon as the worth stabilises, patrons will settle for the worth and demand ought to enhance once more,” he stated.
Falling shopper demand
The jewelry trade is anticipating the patron demand for gold to falter additional amid surging costs of the dear metallic and financial slowdown.
“The demand is already very sluggish in the mean time with solely 20-25 per cent enterprise going down following the financial slowdown, insecurity over jobs, social distancing and lockdowns on account of Covid-19. The excessive value of gold will add on to the already sluggish shopper demand,” All India Gem and Jewelry Home Council chairman Anantha Padmanabhan stated.
(With PTI inputs)