Gold prices down, but experts say expect profit till Diwali
Gold prices continue to sink in the domestic bullion market. On Monday, the price of gold futures on MCX came down to ₹47,526 per 10 gram. This is nearly ₹9,000 lower than it’s all-time high of ₹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 ₹46,500 per 10 gram. By Diwali, the price of gold can go up to ₹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 ₹46,500 per 10 gram. In the short term, gold can reach ₹48,500. At the same time, by Diwali, the price of gold can go up to 52,500, they said.
Received negative return so far this year
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.
Dropped nearly ₹9,000 from the highest price
The price of gold in the Indian markets fell nearly ₹9,000 from its highest price. The price of gold fell by ₹9,000 from 56,200 thousand per gram in 2020 to reach ₹47,526 for the same quantity.
Silver falls by ₹12,930 from the highest level
The all-time high of silver is ₹79,980 per kg. Accordingly, silver is also cheaper by about ₹12,930 from its highest level.
Import of gold 800-900 tonnes annually
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.
