Will gold price reach Rs 65,000 by Diwali?
Excessive buying led to a rise in gold prices and profitability. Silver can reach 90,000
hi all lets talk about gold price, now a days we saw the price gone too high.
This week has seen a big change in gold and silver prices. Excessive buying earlier has pushed up gold prices and seen profiteering. Analysts are trying to predict what the price of gold will be in the near future.
Gold futures hit a record high of Rs 56,000 earlier this week. Then on Wednesday it fell to Rs 50,000. It saw a 10 per cent decline. Silver futures fell 22 per cent to Rs 61,000 after hitting Rs 78,000 earlier in the week.
The last few days have seen a decline in gold-silver prices. On Thursday, gold was trading at an estimated Rs 52,000 while silver was trading at Rs 67,000.
Traders are estimating prices based on the Gold-Silver ratio. This ratio indicates how many ounces of silver are needed to buy one ounce of gold. Estimates of the prices of both the metals can be obtained even though this ratio may not be as high as it used to be due to high volatility. The estimate suggests that the silver bulls may be down a bit but will have earnings potential.
Gyanshekhar Tyagarajan, director, Comtradez, said that the gold-silver ratio indicates that the price of silver is not high. “Gold will continue to rise, silver will also continue to rise but it will remain normal,” he said.
He said the target price for gold in the short term in dollars is 21 2,100 an ounce. Prices could go up to 23 2350 by December. When silver will reach 30. This could reach 33 33 by December. Gold can reach 65,000 by Diwali while silver can reach 90,000.
Gold is trading at an estimated 30 1930 an ounce in the international market. Silver was at 26 26 an ounce on Thursday. Silver has risen 45 per cent this year against which gold has risen 27 per cent.