Mumbai, Dec 30 (PTI) Gold may have lost its sheen a bit in the second half of the passing year, but it is expected to regain its lost luster in the coming year. Amid the pandemic and inflation concerns, gold, which is considered a safe investment, may once again touch Rs 55,000 per 10 grams.
In the year 2020, during the first wave of the Covid-19 epidemic, gold had gained a lot of momentum and it reached the price of Rs 56,200 per 10 grams. But the year 2021 did not prove to be such a good year for it. In the midst of the continued rally in the stock markets, the attractiveness of investors in gold has diminished.
For this reason, gold is currently trading at around Rs 48,000 per 10 grams. This price is about 14 per cent lower than gold’s all-time high and is also down four per cent as compared to January 2021.
Despite this fall, the current level of gold is also three per cent higher than the overall international prices, which is attributed to the depreciating rupee against the US dollar.
Comtrendz Co-Founder and Chief Executive Officer (CEO) Gyanasekhar Thiagarajan attributes the rally in equity markets as the reason for gold’s performance not being up to expectations. He said, “Along with this, restrictions imposed due to the possibility of increasing Covid infection around the Christmas and New Year holidays are seen in many countries of Europe. America has also asked its citizens to take great precautions regarding travel. Appealed.”
Thiagarajan said reducing policy rates could make the US dollar more attractive than the euro and yen.
In the international market, gold was at the level of $ 1,791 per ounce in the spot market, while MCX gold futures in India were at Rs 47,740 per 10 grams on December 29.
Thiagarajan believes that gold prices are expected to rise in the medium term. In addition to inflation concerns, uncertainties surrounding the new form of the coronavirus, Omicron, could also fuel the uptrend.
“It will get good support, given the declining trend in the stock markets and a favorable view of gold as a tool to combat inflation. If there is any geo-political tension, it will get further strength,” he said. “
He said that in the first half of the year 2022, gold is expected to remain in the range of $ 1700-1900 an ounce and in the second half it can even cross the level of $ 2,000 an ounce. In India, gold is expected to remain in the range of Rs 45,000-50,000 per 10 grams in the first half and cross Rs 55,000 per 10 grams in the second half.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said US inflation data and bond yields could also give a bullish momentum to gold. He said that in the long term, gold is expected to find support at the level of $ 1970 an ounce. For India, this figure can be Rs 51,800 per 10 grams.
Somasundaram PR, Regional CEO (India), World Gold Council, believes that India has significantly reduced the potential impact on business by making hallmarking mandatory. So far 1.27 lakh jewelers have registered with BIS to sell hallmarked jewellery.