New Gold Bull Market to Lift Prices to Fresh Highs

SEATTLE (Scrap Monster): Expert reports suggest the possibility of gold prices hitting fresh highs during the new gold bull market. According to analyst reports, domestic gold prices in India are likely to cross INR 40,000 per 10 grams.

Anuj Gupta of Angel Broking noted that the recent surge in gold prices is primarily due to the decline in global growth rate. Lower interest rate by central banks, ongoing trade war between the U.S. and China and the recession warning via the bond market are the other key factors that have supported the jump in gold prices.

The prices of precious metals tend to rise, especially in the event of global growth concerns or political upheaval, Gupta said. He expects gold prices to hover around INR 39,000-40,000 per 10 grams by Diwali. The easing in trade tension between the U.S. and China may lead to some slowdown in gold demand, but over the trend is negative, he added.

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The recent report published by Goehring & Rozencwajg noted that the bear market in gold has run its course and a new bull market has begun. The report titled “The Gold Bull Market is Here” stated that all investors should have significant investments in precious metals and related equities. Those making precious metals investments now would be able to reap in good profits over the next decade, it said.

Meantime, elevated prices are seen impacting demand for gold in India. The latest data indicates that gold imports to India dropped sharply by 42% year-on-year during the month of July this year. At the same time, supply of scrap gold has been on the rise.