Gold prices down, but experts say expect profit till Diwali
27/07/2021
NEW DELHI, jul 26: Gold prices continue to sink in the domestic bullion market. On Monday, the price of gold futures on MCX came down to Rs.47,526 per 10 gram.
This is nearly Rs.9,000 lower than it's all-time high of Rs.56,200 in August last year.
But experts say that it is still profitable to invest in gold as long as the price of the precious metal stays above Rs.46,500 per 10 gram. By Diwali, the price of gold can go up to Rs.52,500, the experts said. Both international and domestic factors are responsible for the fall in gold prices, according to Anuj Gupta, Vice President (Commodity & Currency), IIFL Securities. The bullion market experienced sluggishness in July as this is not a wedding season in the country, he explained and said that this is the reason why the demand for gold decreases.
According to commodity trackers, the price of gold in the Indian market sees strong support at a price point of Rs.46,500 per 10 gram. In the short term, gold can reach Rs.48,500. At the same time, by Diwali, the price of gold can go up to 52,500, they said.
Mostly in the red territory, gold has only given negative returns to investors so far this year. At the same time, in 2020, gold gave a bumper return of 25 per cent to investors. In such a situation, experts are expecting the festive season to accelerate the boost for investors. So, in all likelihood, investors can earn good money during this period.
The price of gold in the Indian markets fell nearly Rs.9,000 from its highest price.
The price of gold fell by Rs.9,000 from 56,200 thousand per gram in 2020 to reach Rs.47,526 for the same quantity.
The all-time high of silver is Rs.79,980 per kg. Accordingly, silver is also cheaper by about Rs.12,930 from its highest level.
India, the largest importer of gold and gold, imports 800-900 tonnes of gold annually. The gold import into the country is mainly done to meet the demand of the jewellery industry. Additionally, the gems and jewellery exports grew to $9.1 billion during the first three months of the current fiscal, as against $2.7 billion in the same quarter last year.
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