54 kg of gold worth Rs 41 crore, Rs 10 crore in cash seized from abandoned vehicle in MP
The seizure was made in the wee hours of Friday on a tip-off.
The conflict has impelled investors’ preference for gold, which has resulted in an upward price mobility in the asset class, said Emkay Wealth Management.
Gold prices are expected to edge higher in the immediate term ahead of Diwali. It is to be noted that the gold price has been rising in the past few weeks as conflict erupted in the Middle East and US treasury bond yields moved higher.
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“Considered as a safe haven, especially in times of geopolitical uncertainty, gold is expected to trend higher in the immediate term,” it said.
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Emkay Wealth Management expects gold prices to remain at USD 1,990 and USD 2,030 levels.
On Wednesday, the price of 24-carat gold jumped by Rs 240 in early trade.
Ten grams of 24-carat gold was selling for Rs 61,840 in Delhi while in Mumbai at Rs 61,690.
“Taking a perspective before the situation of conflict arose, despite persistent inflation across all major economies, gold was not able to rise much because with inflation came extremely hawkish monetary policy which pushed interest rates higher,” Emkay noted.
“Gold prices have not broken through any key support levels convincingly in the last three months,” it said.
It is to be noted that gold has assumed safe haven status despite a strong dollar scenario.
On the supply front, the expectation is that fresh supply from the mines as well as of used gold will be relatively high.
Also, the easing of monetary policy stance is projected to come into effect in mid-2024. This will help bring incremental value to the investors taking long positions from now.
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