In the short term, the gold market will seem to be consolidating. But in the long term, the trend for gold will remain positive. So, the long-term trend for gold is positive, and the experts are completely bullish on yellow metal.
Diwali demand may support gold prices
As far as the gold market is concerned, last year there was a big rally in gold, and after that, the market has been showing a consolidation phase, and a good correction was seen from the higher levels. So definitely, this festival season will be a better season in terms of consumer demand, said Manoj Kumar Jain, Head of Commodity at Prithvi Finmart.
Is it the right time to invest in gold?
“But looking from the investment perspective, this is currently a period of consolidation. So, for investors who are investing through SIPs or thinking of investing for the long term, this is also a good time,” he added.
Gold prices: Geopolitical tensions remain a key trigger
In the short term, the market will remain in a range. But in the coming time, as soon as the geopolitical tensions, especially the issue between the US and Iran, get resolved, there will be a good rise in gold. So, in the short term, the market will appear to consolidate, but in the long term, the trend for gold will remain positive.
On the same line, Ankit Kapoor, Co-Founder and Director of Commodity Samachar Securities said that the markets might see a good rally in the coming time. But the next 10 days are going to be quite crucial because there is a FED interest rate decision coming up. US election results are on the way, and the biggest concern here is that the Diwali holidays are also approaching.
Gold price target for Diwali: Rs 1.50-1.52 lakh
So, considering the festive demand of Diwali, this time gold should trade between 150,000 and 152,000 during Diwali, said Kapoor.
On a bit long-term, the trend is still quite positive, and the markets may see a big rally in gold in the coming period. There is very little expectation that gold should fall below Rs 1,36,000. This is the right time. “If gold is available between 1,52,000 and 1,48,000, we can buy and hold. But if I talk about silver, I am not so bullish because many traders are still expecting levels of 3,50,000 to 4,00,000. I don’t think we will see the 4-lakh level soon,” said Kapoor.
Silver outlook: Experts expect range-bound trade
As for silver, right now in terms of trading, silver is the best. But there will be a range for both buying at the lower level and selling at the higher level, and it’ll trade like a pendulum in both ways. Talking about Diwali, trading around 2,20,000 to 2,25,000 would be good. “We shouldn’t have very high expectations right now. So, silver will likely trade within a limited range,” said Kapoor.