India Gold Prices to Surge 15% by End-2020

SEATTLE (Scrap Monster): The domestic gold prices in India are likely to surge higher by 15% to hit levels of INR 55,000 per 10 grams from current levels of around INR 45,000 per 10 grams. Furthermore, over a period of 18 months, the prices are expected to touch INR 60,000 per 10 grams.

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According to bullion analysts, the gold prices are likely to remain range bound in the immediate near term, primarily due to the loss of demand among consumers for physical gold. The prices are not expected to witness steep rally in the near term as physical gold demand is expected to remain during post-Covid-19 period. Moreover, economic slowdown and reduced urban spending may impact domestic gold demand.

The investor demand for gold has been strong these days and is expected to continue so, mainly on account of volatility in stock markets and huge decline in crude oil prices. The fears of imminent global recession and anticipated quantitative easing measures by central banks around the world will likely add to gold’s long-term reputation as a safe haven asset.

Meantime, the international gold prices are forecast to surpass $3,000 per Oz by end-2021. Bank of America is even more bullish and expects gold prices to surpass the above levels by October next year.