The price of the Gold hit a new high of Rs 61,000 per 10 grams in the national markets & a one-year high in the international markets, silver too sees an upswing in being an investment option offering high returns of 40%.
Given the economical & political uncertainties that drew investors to Gold, the price of the yellow metal hit a new high of Rs 61,000 per 10 grams in the national markets & a one-year high in the international markets, stated earlier today. In the international markets, the price of gold shot up to $2,032 per ounce, however in the MCX, prices skyrocketed at Rs 61,181 for every 10 grams & traded at an average price of Rs 60,978 on Wednesday.
A geopolitical uncertainty, gold on the rise
On the global level, gold gained support by the weak dollar, considering the plummeting drop of the rate of employment in the US. Eased against most currencies, the greenback, including the rupee gained 33 paise to close at 82, against the dollar.
From geopolitical uncertainty to chaotic criminal actions on Donald Trump, there are multiple aspects that have led to the price of gold seeing an upswing in the market. Furthermore, the interest rates have capped minimum gains in the stock market. The Regional Chairman, Gems & Jewelry Export Promotion Council, Kolkata, Pankaj Parekh believes that all of these developments have given gold a promising future in both the national & international markets.
A bullish growth trajectory for Gold
Parekh also said that there was no support for the yellow metal at its fresh high of Rs 61,000. Being an exporter of gold jewelry, he has witnessed a reaction, every time the yellow metal hits a new peak. Most of the buyers are unwilling to fix rates. While most rates definitely won’t be what they were in the year 2020, those prices of gold would only be seen in the pages of history, he further stated.
Bhargav Vaidya of BN Vaidya Associates went on to further add to what Parekh told the sources, about the yellow metal. Despite expecting corrections in the overall pricing which would be a great purchasing opportunity, he is bullish on the growth trajectory of the yellow metal. He envisions the prices going up to Rs 65,000 by March 2024 & the international rates to be around $2,100.
Bhargav further states that with a change in the exchange rate or with the government revising the rates, the value of the gold price could get impacted. He said that according to the trade agreement with UAE, importing the yellow metal attracts 1% lower duty. Being extended to other countries, this could have a diverse impact on the final pricing of gold.
Gold, a circumstantial favorite investment option
The President Of Madras Jewelers & Diamond Merchants’, Jayantilal Challani, also shared similar views with various sources. He said, given the present circumstances, be it weak industrial growth statistics, Finland joining NATO, the US banking crisis & the inflationary pressures in the US and Europe have all played a part in the price of gold rising. This has made the yellow metal a current favorite investment for many investors on a global scale.
Also, according to Jayantilal, along with gold, silver too sees an upswing in being an investment option offering high returns of 40%. The metal has seen a rise from around Rs 55,000 per kg to Rs 75,000 on Wednesday. He went on to further add that silver as metal will be utilized more in industrial purposes than for domestic customers. However, given the recent jump in prices, it is tapping into the interest of investors with a scope to grow by over 20% in the next 3 months.
