Gold Price in India: Gold prices are expected to surge to Rs 65,000-67,000 per 10 gm on the domestic front in the long term and is likely to maintain the target of $2500 on the COMEX. The domestic gold futures (expiring on December 4) fell 0.81 per cent to Rs 50,090 and silver futures dropped 2.5 per cent to Rs 61,459 on Wednesday. According to a recent commodity insight report by Motilal Oswal Financial Services, gold is being recommended to be collected with every dip towards Rs.49,500-48,500, a good range to buy with short-term upsides being capped around Rs.52,000-53,000.
According to the report, Comex Gold is expected to form a base around $1,880-1,840, while rallies are expected to be capped in the range of $1,940-$1,975. However, on the longer-term perspective, the target for gold is Rs 65,000-670,00 is maintained on the domestic front.
On Wednesday (November 11), the rupee settled at 74.36 against the greenback, declining by 18 paise over its last close. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.15 per cent to 92.87.
Domestic spot gold closed at Rs 50,708 per 10 grams on Wednesday, and silver at Rs 62,440 per kilogram – both rates excluding GST, according to the Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
The demand for the precious metal usually spikes towards the end of the year, as buying gold for weddings and festivals such as Diwali and Dussehra is considered auspicious. The report said that India’s gold demand in the first three quarters fell by 49 per cent from a year earlier to 252.4 tonnes as COVID-19 lockdown hit the jewelry demand.
While the overall gold consumption fell, the demand for coins and bars rose by 51 per cent in the third quarter as rising prices attracted investors. This year, gold touched an all-time high on both COMEX as well as on the domestic bourses. The yellow metal consolidated after touching an all-time high of Rs.56,400, with uncertainties providing a rigid floor at the lower levels.
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