Anuj Gupta, Head of Commodities & Currencies at HDFC Securities, stays optimistic about gold’s continued rally, citing sturdy demand, international uncertainty, and central bank purchases as key drivers.
In an interplay with ET Now, Gupta famous that gold’s sharp rise over the previous 5 years is primarily attributable to growing funding demand relatively than simply jewellery consumption.
“Now buyers are taking gold as an funding, not as jewellery, so we noticed an enormous demand in gold bars, in gold cash, the demand is growing,” he defined.
This shift has pushed international gold costs to file highs, with MCX costs at present hovering round Rs 88,350 per 10 grams and worldwide spot costs close to $3,012 per ounce.
Can gold hit Rs 1 lakh?
With gold costs steadily shifting to larger value bands, many buyers are asking whether or not Rs 1 lakh per 10 grams is achievable. Addressing this, Gupta remarked, “Sure, see, I can’t say proper now, however sure, undoubtedly, because the long-term horizon, it might check Rs 1 lakh.”
Within the quick time period, nonetheless, he expects gold to the touch Rs 90,700-91,000 per 10 grams on MCX and $3,200 per ounce internationally by the top of the monetary yr. “The pattern remains to be bullish. Since January 2025, gold and silver have been the one asset lessons performing higher than others,” he famous.
Technical View: Is gold in a bubble?
Regardless of considerations about whether or not gold is overbought, Gupta dismissed the thought of a value bubble. “Gold is just not used for promoting functions; individuals are all the time shopping for gold for holding,” he mentioned. He defined that in India, gold is never bought for financial causes—most gross sales happen to change outdated jewellery for brand spanking new designs, that means that provide stays restricted regardless of value surges.
Discussing value corrections, he highlighted that gold has been shifting its value vary constantly. “Three months again, it was within the $2,600-$2,700 vary, now it’s within the $2,900-$3,000 vary. At any time when we noticed a correction, it was solely 20-30%.”
He advised that if gold corrects to $2,800 per ounce, it might current a shopping for alternative.
Funding Technique: Tips on how to purchase gold now?
Gupta advises buyers to method gold as a long-term investment relatively than making lump-sum purchases at present elevated ranges. He advisable a scientific funding plan (SIP) method, stating, “Gold is a technique of funding. If someone needs to invest in gold, he can begin with 10% on the present degree and purchase extra on each correction.”
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Why gold costs are rising?
Gupta attributes the gold value surge to a number of components, with safe-haven shopping for and central financial institution accumulation being the most important triggers. He said, “The demand is the primary cause that gold costs are growing within the final virtually 5 years.” Moreover, rising geopolitical considerations and macroeconomic uncertainties are conserving gold in focus.
Discussing international central financial institution shopping for, Gupta identified that “Even we’ve seen a lot of central banks growing their gold holdings. China was additionally shopping for gold for his or her central financial institution. So, undoubtedly, there are many small economies the place central banks are shopping for gold. Even India can be shopping for gold for his or her reserves.”
The continuing geopolitical tensions, significantly the Israel-Hamas battle and commerce uncertainties attributable to the Trump tariff plan, have additional fueled safe-haven demand. “We noticed geopolitical pressure between the Hamas battle, so that’s once more making a safe-haven demand. Additionally, the Trump tariff plan is creating uncertainty in Europe, China, even the US, Mexico, and Canada,” he defined.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances)
