Katke said gold can be accumulated around Rs 45000 mark targeting Rs 50,000-52,000 in next 3 to 4 months time.
Gold ETFs are a better option and are becoming popular day by day that offer flexibility to investors and simple to hold and manage, said Sunilkumar Katke, Head - Commodity & Currency, Axis Securities said in an interview with Moneycontrol's Sandeep Sinha.
Katke said gold can be accumulated around Rs 45000 mark targeting Rs 50,000-52,000 in next 3 to 4 months time.Edited excerpt:
Q) Do you think the ultra-loose monetary policies of various central bankers and stimulus packages announced by many governments supporting gold prices?
A: It's a tricky situation where the safe-haven demand for Gold is driving the prices up due to COVID 19 uncertainty. Most of the central banks are trying to manage the situation through stimulus packages to support the economy in dealing with the pandemic which should put a limit on the yellow metal prices in theory but the conservative monetary policies do indicate towards a recession-like scenario considering the lockdowns across major economies and the same should keep the prices up.
Q) Where do you see the gold prices headed toward in the near-term?
A: Considering the current scenario, all fundamentals suggest the prices may touch close to $1850 - $1900 mark at Comex and about Rs 50,000 mark in the coming three months. If the central banks liquidate gold holdings to manage the situation, the prices may get capped.Q) The gold-silver ratio is trading over 100 for a while, do you think it is opportune time to buy silver?
A: There is no safe-haven demand for silver, it is more of an industrial metal that is following base metals trend, more than that of the yellow metal. Considering the lockdowns, industrial demand remains sluggish and hence we expect the prices to stay in the range of $16 at Comex in the medium term.
A: Gold can be accumulated around Rs 45000 mark tagging Rs 50,000 - 52,000 in next 3 to 4 months time.Q) How much percentage of gold constitutes retail investor holding?
A: It is estimated that about 26,500 tons are being held by retail in India and on average a person spends about 8 percent of his income on this precious metal.Q) Do you think investors should invest in gold given the threat of global recession due to coronavirus?
A: It is always advisable to have a diversified portfolio and since gold has been the front runner for the last 2 years providing decent ROI, it is always advisable to have a portion of investment in yellow metal in a scenario we are in today.Q) On the auspicious festival of Akshay Tritiya where do you suggest investor invest i.e. gold ETF, physical gold, or sovereign gold bond for long term?
A: Gold ETFs are a better option and are becoming popular day by day that offer flexibility to investors and simple to hold and manage.
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