Gold may surge to Rs 40,000 per 10 gm by Diwali: Experts

Mumbai, August 18

Amid global growth concerns and heightened trade tensions, gold prices might cross the Rs 40,000 mark by Diwali, analysts have said.

Typically, the demand for gold reflects the expectations about future. The price of the precious metal tends to rise amid uncertain economic situations or political upheaval.

Currently, the October contract of gold was priced at Rs 37,995 per 10 gm on the Multi-Commodity Exchange (MCX). “Demand for the precious metal may slow down slightly owing to some easing in trade tension between the US and China, but the trend is negative. We see gold prices around Rs 39,000 to 40,000 per 10 gm by Diwali,” said Anuj Gupta of Angel Brooking.

Gupta explained that the gold prices were surging primarily owing to the decline in global growth rate. Experts globally are also suggesting investments in gold and other precious metals amid these uncertain times as an insurance against economic uncertainty.

“We now recommend all investors have a full allocation to precious metal investments in their portfolio,” said a Gohring and Rozencwajg report. — IANS