Gold Price Below Rs. 46000 Today: Will The Yellow Metal Sustain Bull Run?

In Tuesday's trade (April 28, 2020), gold prices in line with global rates tumbled to hit low of Rs.45,865 per 10 gm in the futures market. 22 K gold is priced for Rs. 4534 per gm.

On rush to safety on April 27, 2020, gold gained in early trade but later lost 0.72% or Rs. 336 to end at Rs. 46191.00 per 10 gm in the futures market.

Gold Price Below Rs. 46000 Today: Will The Yellow Metal Sustain Bull Run?

In the international markets as equities gained momentum on easing of lockdown restriction at some of the places, gold lost ground. Nonetheless, more bail-out from across the economies to battle Covid 19 curbed losses in the yellow-metal.

Spot gold declined by 0.7% but still held above $1700 levels per ounce, while gold futures fell 0.3% to $1,719.20 per ounce.

Asian stocks have opened mixed with Japan's Nikkei trading weak by 0.62% even as the Bank of Japan has extended more bail out package for combating Covid 19 fall out.

Nonetheless, oil prices have continued their downward journey on storage issues andBrent crude has receded below $20 per barrel levels.

Back home, though the physical shops remained shut due to Covid 19, the auspicious occasion of Akshaya Tritiya did not boost the buying sentiment through the e-route with sales drooping by 95%.

Will Bull Run in Gold as Estimated be Really Seen?

By the year end it is estimated that gold prices will rally another 7.5% to hit Rs. 50,000 levels while BoFA says that by the next year end in Indian rupee it will hit Rs. 82000 per 10 gm, a whopping 75% increase in price.

There is a demand factor that comes into play and as seen historically for the run up in gold what is required is a sustained buying in gold, which given the turmoil may see less buying from consumers. Also, as is reported central banks are also cutting down their purchase. And in this scenario, gold's bull run may be difficult to sustain.

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