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The Right Opportunity To Invest In Gold! Every 10 grams can be a profit of Rs 5,000 till next Diwali

Diwali Gold Outlook: Motilal Oswal expects gold prices to reach Rs 52,000-53,000 in the next 12 months.

Gold Investment on Diwali: This Diwali is becoming the right opportunity to invest in gold. The effect of relief in Kovid 19 restrictions and recovery in the economy is being seen on the demand for gold. During the July-September 2021 quarter in the country, along with the total demand for gold, there has been a strong increase in jewelery demand. During this, gold import was about 740 tonnes. Brokerage house Motilal Oswal Financial Services says that in the current situation, there is an opportunity for investors to invest in gold. Gold prices are expected to reach Rs 52,000-53,000 per ten grams in the next 12 months. Thus, at the current price, investors can make a profit of more than Rs 5,000 for every 10 grams till the next quarter.

According to the Motilal Oswal report, from last Diwali till this Diwali, bullion prices have been consolidating and have seen some volatility between the volatility in the US dollar and bond yields over the past few months. For the first half of the year, better-than-expected economic data and a better Fed outlook supported most market participants. However, the second half has seen a weak data set and a change in the Fed’s outlook, which may start the rally in gold prices again.

Gold prices increased by 25% in 2020

According to the report, if we look at 2019 and 2020, there has been a good jump in gold prices. Gold prices have increased by 52 percent in 2019 and about 25 percent in 2020. However, some decline was also seen in 2021. Right now the prices are trading between Rs 47,000 to Rs 49,000. Gold demand in India has jumped sharply in 2020 from the low levels seen during the pandemic.

Unlike Diwali of 2020, this year there has been a lot of relaxation in Corona restrictions, shops are open, and this year there has been an increase in overall demand. Due to this imports have also increased. According to the World Gold Council data, gold imports till September stood at around 740 tonnes. In the last few months, there has been a huge jump in risky assets and it has also given good returns. Any change in this trend or weakening of the momentum can lead to a big jump in safe investments, especially gold.

Global factors will also dominate

According to the report, rising uncertainty about China’s evergrande, power crisis, US-China trade dialogue, rising cases of Kovid-19 and delta variants, increase in debt and some other such factors can support gold prices. . Expectations are rising at the next Fed meeting to cut the massive bond purchase program, which the Fed started to protect the US economy during the economic crisis caused by Kovid. Although the market is well prepared for this. Some small and big factors can give another buying opportunity in gold.

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Gold can set a new record at COMEX

Motilal Oswal says that gold prices are expected to rise in the next 12 months. In the current situation, there may be some volatility for the short term, which will give a better buying opportunity to the investors. The brokerage house believes that gold has the potential to rise to $2,000 once again. Gold can also set a new lifetime high on Comex. In the domestic market, in the next 12 months, the prices can go up to the level of Rs 52,000-53,000.

On October 29, 2021, on the Multi Commodity Exchange (MCX), gold prices fell by 0.74 per cent to Rs 47607 per ten grams, down from Rs 48,000. In this way, by next Diwali, investors can make a profit of around Rs 5,000 per ten grams.

Gold demand up 47%

According to the latest data from the World Gold Council (WGC), gold demand for the quarter ended September 2021 grew by 47 per cent year-on-year to 139.1 tonnes as against 94.6 tonnes a year ago. Jewelery demand in India also jumped 58 per cent year-on-year to 96.2 tonnes during the July-September 2021 period.


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