Gold in India to be More Pricey in 2020

SEATTLE (Scrap Monster): Gold in India is likely to retain its glitter in the New Year. The yellow metal is expected to remain pricey in 2020, mainly on account of ongoing geopolitical tensions, economic downturns and volatility in the country’s currency.

According to Gnanasekar Thiagarajan, Director, Commtrendz Research, the low interest rate levels across the world and the possibility of further worsening of geopolitical concerns are being considered as reasons for higher levels in gold prices in 2020. The domestic gold prices are likely to range between INR 41,000 and INR 41,500 per 10 grams in the medium term. Further, the prices may even touch much higher levels of INR 44,500 to INR 45,000 per 10 grams.

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Somasundaram P R, Managing Director, WGC-India noted that the local currency prices for gold in India surpassed life-time highs towards end-2019, which in turn led to muted consumer demand. The Council estimates the overall yearly gold demand in 2019 to remain at the lower end of 700-750 tonnes range. The country’s central bank added almost 60 tonnes to its gold reserves during the year, he said.

Meantime, Prithviraj Kothari, President, India Bullion and Jewellers Association (IBJA) foresees rising gold price trend in the coming year. In his opinion, the gold prices are likely to hit a new high in the next two to three years. The liquidity crisis in India and depreciation of the rupee against the U.S. dollar will lend support to gold prices. He sees gold prices to range between INR 38,000 per 10 grams and INR 42,000 per 10 grams in 2020.