MUMBAI: Gold reached a new milestone, with prices of the yellow metal touching the life-time high on Thursday. Gold futures recorded a high of Rs 61,490 per 10 gram, an increase of about Rs 500 on the Multi Commodity Exchange, helped by rise in the prices of precious metal in the international market.
Weakness in the value of dollar and decline in bond yields after the US Federal Reserve signalled a pause in the rate hike has pushed up the prices of gold.
Yellow metal is on the bull run since the start of this and its prices have risen by about 10.8% in 2023.
Gold prices are expected to inch higher amid prospects of a looming recession in the United States. Experts expect the price of gold to reach Rs 68,000 by the end of current the financial year.
“Going ahead gold still looks lucrative in terms of return on investment from a safety perspective where the Inflation still remains high globally and the interest cycle which is yet to ease, will also provide the push needed for gold to run and give 10-15% return in FY24,” Jateen Trivedi, VP Research Analyst at LKP Securities told this newspaper.
“The prices can easily touch Rs 66,000-Rs 68,000 on base case performance before we reach the FY24 end next year. On the back of weak and uncertain performance in risky assets it is strongly advised to remain invested in Gold for further 10-15% returns on base case and 15-20% on bull case scenario,” he added.
Gold prices in last financial year have jumped by Rs 8,000 in domestic markets from Rs 52,000 to Rs 60,000, which is 15% returns beating all other asset classes.
The investment demand of gold has remained high in the domestic market as the yellow metal has given better returns compared to equities. The ongoing geopolitical tension between Russia and Ukraine and the fears of recession has kept the demand of gold high in the past one year.
Scaling new highs
Rs 61,490/ 10 gram: New high of gold prices on Thursday
10.8% Rise in gold prices since January 1, 2023
15%: Increase in the gold prices in fiscal 2022-23
Rs 8,000: Rise in the price of gold in the fiscal 2022-23
Rs 52,000: Price of 10 gram of gold at the start of April 2022