InvestorQ : How do you see the gold prices moving in India? Is it likely to cross Rs.50,000 per 10 grams?
Arya Nanda made post

How do you see the gold prices moving in India? Is it likely to cross Rs.50,000 per 10 grams?

Answer
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Deepa Salunkhe answered.
3 months ago


In the Mumbai bullion market, the gold prices have already scaled up to Rs.48,575 per 10 gram which is a new high in the Indian market. The weakening rupee versus the dollar has given a boost to the rupee price of gold as the dollar appreciation also gets factored into the local price. Even in the international market, gold is at a 9 year high.

Axis Securities has said in a report that gold prices had rallied rapidly from $1,700/oz to $1775/oz due to confusing statements on the status of the US-China trade deal. Also the loose money policy followed by most central banks, the uncertainty surrounding the equity rally and falling 10-year bond yields have all been responsible for the rally in gold.

On the MCX futures segment, gold has already touched an intraday high of Rs.48,589 and most traders believe that it is set to cross the Rs.50,000 per 10 gram mark. In the global market, the level of $1790/oz could be a major resistance and if it breaks that level then we could scale the previous all-time highs seen in the midst of 2011.