Gold to surge Rs 56000/10gm by next year March? Check what you should do

Commodity experts believe Gold is in-line with their expectations and likely to surge more going forward to reclaim the Rs 50000 per 10-gram mark in the coming months. In this regard, the analysts also share tips for gold investors in order to earn bumper gains in minimum risk. 

After hitting Rs 49000 per 10-gram levels on Wednesday, the yellow metal has corrected today. With a dip of 0.02 per cent or Rs 9 on May 27, 2021, the price of gold futures maturing on June 4 stands at Rs 48,751 per 10 grams. 

Motilal Oswal’s VP Research – Commodities and Currencies, Amit Sajeja predicts that with a mild correction in the precious metal, it’s going to surge as the dollar index and 10-year bond yields are on the decline. He expects, we may see Gold surging to Rs 56000/10 gm possibly by next year March. 

Sajeja pointed out, with digitisation taking center stage it has become to invest in digital Gold mere by opening any Demat account, as the platforms accept investment starting with Rs 500.  

He further adds, the digital gold doesn’t require additional storage space or holding cost and can easily be converted into physical whenever required, however, has certain limitations to it.  

Similarly, he also suggests Gold buyers can trade in Gold Futures and keep rolling over a month-on-month basis. This is considered to be one of the easiest way to invest in safe-haven commodity. 

Other investment option, could be Sovereign Gold Bonds, which is a fantastic investment opportunity for the long-term that is around five to eight years, however, it becomes very difficult to hold the yellow metal for such a long-time considering its volatility dependent on other factors. 

IIFL’s Commodity expert Anuj Gupta also believes the yellow metal rally to continue and it would gain by Rs 49500 – 49850 in next five to six days, with minute correction. He expects, once the resistance of Rs 50000 per 10 grams is breached, it would inch to Rs 52000-53000/10 gm levels. 

Gupta says, the expectation with respect to Gold is perfectly aligned, and the external factors such as weak bond yields and dollar index would continue to grace the Gold rally.