Analysts: Gold prices may rise to Rs. 82,000 per 10gm by end 2021

Mumbai: As stocks and bonds as investment avenues do not show much hope under current market conditions, gold could be the asset to put your money in. If analysts at Bank of America Securities (BofA Sec) are to be believed, gold prices in the international market could rally to $3,000 per ounce (Oz) by end 2021. Translated into Indian rates, that could be about Rs 82,000/10 grams at current exchange rates.

On Thursday, gold futures for June on MCX closed at Rs 46,352/10gm. So, in about one and a half years, gold prices in India could gain about 75 per cent. In the international market, gold is currently trading at about $1,750 level.

Analysts at Goldman Sachs, another global financial powerhouse too put their bets on the yellow metal and said, given current global market scenario, it was a better hedge than crude oil. Incidentally, late March, analysts at Goldaman Sachs had predicted that crude oil price could enter the negative territory.

Nominal GDP, central bank balance sheets, or official gold reserves will remain the key determinants. “As central banks and governments double their balance sheets and fiscal deficits respectively, we have also decided to up our 18-month gold target from $2,000 to $3,000,” noted BofA Sec.


By | 2020-04-25T13:26:06+00:00 April 25th, 2020|Gold-Investment|0 Comments

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