Gold price outlook: Invest after Pitrupaksha to make profit because rates will skyrocket to this BIG amount ahead of Dhanteras
Commodity market analysts say that gold prices can go up to Rs 40,000 per 10 grams in the Indian market in the upcoming festive season, while in the international market, the yellow metal can trade between $1,500-1,600 an ounce.
In the domestic bullion market, gold prices and those of silver, may again jump in a big way. Pitrupaksh will end soon and Navratri will start from November 29. With onset of Navratri, public starts purchasing expensive metals, therefore, gold prices will rise and they can once again go up to Rs 40,000 per 10 grams. Commodity market analysts say that gold prices can go up to Rs 40,000 per 10 grams in the Indian market in the upcoming festive season, while in the international market, the yellow metal can trade between $1,500-1,600 an ounce. Recently, gold had gone above Rs 40,000 per 10 grams in the domestic bullion market. So, those interested in buying gold and that too at prices that are comparatively lower will have to do so soon after the end of Pitrupaksh.
Ajay Kedia, director of Kedia Commodity, said that due to ongoing US-China trade war and the tensions in the Gulf region, investors' interest in gold remain intact as safe investment instrument in the current global scenario. However in India, the festival of Dhanteras and Diwali bring auspicious occasion to buy new things including gold and silver.
According to Shanti Bhai Patel, president of the James and Jewelry Trade Council of India, shopping starting from Navratri will be in full swing till Dhanteras and Diwali. After that the wedding season will start, therefore, the demand for gold and silver will remain high in the domestic market and price of yellow metal will only rise.
Gold buying trend
Jaipur-based jewelry businessman Sushil Meghraj added that one continuous trend in gold and silver is being witnessed this year, and the price rise in expensive metals also pushes more shopping. Usually, when people buy more when an item is cheap, but the trend in bullion market is just opposite. Traders opine that this rule applies only to consumer goods and not to investment instruments. The purpose of buying gold and silver is also related to investment.
Meghraj said, "Nobody wants to buy when there is a slowdown in gold and silver prices, but when there is price rise, shopping is accelerated in the anticipation of further increase in prices."
Kedia said the gold price is getting support in the wake of reduced income from 10-year bonds and weak dollar in the US, and added that the APCDR gold holding of the Exchange Traded Fund (ETF) reached 908.52 tonnes last week, the highest level since November 2016.
Mumbai commodity consultant T. Ganasekhar, however, said that gold is getting support in the international market due to slowdown in the global economic growth in the wake of US-China trade tensions, and the next month price of yellow metal may go up to $1,600 an ounce. Similarly, prices may also go above Rs 40,000 per 10 grams in the domestic bullion market.
Traders are of the view that to woo the buyers in the festive season, jewelry traders may extend special offer of 15-20 percent discount on making charges.
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Notably, gold prices inched lower on Wednesday as some investors booked profit, but the metal remained supported below a three-week peak hit in the prior session as the launch of a formal impeachment inquiry into President Donald Trump stoked political worries. Spot gold was down 0.1% at $1,529.62 per ounce, as of 0429 GMT, after having risen to its highest level since September 5 at $1,535.60 on Tuesday. US gold futures fell 0.2% to $1,537.00 per ounce.