The Covid have a tremendous impact in our economical sector one of which have affected the increase price of crude oil. This Rising crude oil prices in this pandemic have led supply chain disruptions as well as geo-political tensions and inflationary pressures are likely to lend support to gold, stated-on Thursday by Motilal Oswal Financial Services.
Over the period of 12-15 months the expected rise of Gold price would move towards $ 2,000 per ounce (1ounce is equivalent to around 31 gm) according to MOFSL.
Gold futures currently are trading at around $,1,840 per ounce in New York Mercantile Exchange, which is considered the global benchmark.
The increase of price rate is seen at $ 1,915 followed by $1,965 for the next quarter. As said by MOFSL support is pegged at around $1,800 and $ 1,745 zones.
The year 2021 is the inflammatory year and it could continue to be in the limelight next year too. The distress in the market will continue for a long time as it is the repercussion of this riding inflation although the panic in the market started once US Governor Powell also acknowledge the same and started to act on it, ” it said.
Even the major central banks take measures to calm inflation, rise in crude oil prices and continuing panic involving supply chain issues will continue to keep the pressure on inflation.
After the Fed’s tapering announcement and three rate hike expectations.
Even after the Fed’s tapering announcement and three rate hike expectations, hence, gold prices have been holding firm Market participants did surely discount the next year rate hike expectations although from the fall the price recovered,” MOFSL said.
The windbreak against the inflation is widely considered in Gold Investment.
There are expectations of an import duty on gold back in India in the Budget for FY23, to be tabled in the Parliament on February 1.
A request has been made by The Gem and Jewellery Export Promotion Council (GJEPC) to reduce import duty on precious metals such as gold, silver and platinum from 7.5 per cent to 4 per cent.
On cut and polished Diamonds, the Jewellery body urged the Centre to cut the import duty. Market participants did surely discount the next year rate hike expectations although prices did recover from that fall,” MOFSL said. A possibility of oversupply once the supply disruptions ease could impact the commodity market — gold included.
There are expectations of an import duty on gold back in India in the Budget for FY23, to be tabled in the Parliament on February 1.
