For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Dhanteras 2020: Analyst Expects Gold Prices To Climb To Rs 67,000/10 Grams

By Staff
|

Dhanteras is considered an auspicious occasion for purchase of precious metals in India. It is believed to bring good fortune and prosperity.

This Dhanteras 2020, which falls on 14 November, investors may be reconsidering gold amid high prices.

Dhanteras 2020: Analyst Expects Gold Prices To Climb To Rs 67,000/10 Grams
 

Since the last Diwali, gold prices have climbed 29 percent, making it one of the best performing asset classes. On MCX, (Multi Commodity Exchange of India), rates touched an all-time high of Rs 56,200 per 10 grams in August 2020.

Silver prices have surged more than 35 percent.

As investments made on the occasion of Dhanteras are often done the long term outlook, one can look back at data as far as October 2010, when prices of the yellow metal stood at Rs 20,000 per 10 grams.

Between then and now, gold prices have surged 159 percent to Rs 53,610 per 10 gram on Thursday.

Brokerage firm Motilal Oswal is bullish on gold this festive season.

"Over the last decade gold in India has given a return of 159%. When compared to the equities Dow Jones has given around 154% and the domestic equity index Nifty 50 has given 93% returns in the same period, which makes gold a star performer and particularly justifying the objective of protecting against inflation and depreciating rupee for Indian investors," said Navneet Damani, head of commodities & currencies research at Motilal Oswal Securities, in a report.

The brokerage further said that in the short term, Comex Gold could form a base around $1,880 - 1,840 an ounce, while rallies are likely to be capped in the range of $1,940 - $1,975.

As for Indian rates, Motilal Oswal has advised accumulating gold with every dip towards Rs 49,500 - 48,500 and sees upside capped around Rs 52,000 - 53,000 per 10 grams levels, in the short term.

 

"On the longer-term, we continue to maintain our target of $2500 on the Comex and Rs 65,000 - 67,000 on domestic front," Damani said.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X