Mumbai: Motilal Oswal Financial Services believes that gold prices will touch Rs 63,000 per 10 grams shortly. In an environment of uncertainty due to the Israel-Hamas war, the demand for safe investment is gaining momentum. Another reason is that banks around the world are keeping interest rates on hold.” This year, gold prices have seen fluctuations, both bullish and bearish. Aggressive rate hikes by major central banks have helped some Bullion’s luster fade for the moment. Motilal Oswal’s report said that recent geopolitical tensions and current monetary policy have provided strong support to gold prices.
Certainly there are some headwinds for the precious metal such as expectations of a soft landing, further hike in rates, easing of geopolitical tensions. However, the report says that risk is being priced in gold, from the pandemic to the Russia-Ukraine war and now the Israel-Hamas conflict.
A softening of the Middle East conflict and/or continued tightening by the US Fed may weigh on gold prices. However, these factors may have a longer-than-expected negative impact that could push gold prices to Rs 63,000 per 10 grams.
Due to some major fundamental changes like central bank policies, geopolitical uncertainties, between hard and soft landings, more buying in risk assets and volatility in dollar index and yields, gold and silver prices have fluctuated sharply this year. Seen.
So far the volatility has been high. Earlier this year, gold hit an all-time high of $2,070, then hit a low of around $1,800, and is now back at $2,000, the report said.
The demand for bullion increases during the festive season, but recently there has been a sharp change in the demand trend, where the market does not wait for any reason, and investors also see the right opportunity. Investing. There are many reasons for the rise in gold which keep changing over and over again. But one thing is certain – if you had invested in gold during Diwali 2019, you would have got a return of 60 percent till this Diwali.
SPDR Gold shares have recorded gains of 30 per cent and 10 per cent respectively over the 5- and 1-year periods, while domestic gold ETFs have averaged gains of 55 per cent and 15 per cent respectively over the same period, the report said.
