Mumbai (IANS) Gold prices in India may surpass Rs 47,000 per 10 grams mark in the next 12 to 15 months over mounting concerns due to the coronavirus outbreak, brokerage firm Motilal Oswal said on Tuesday.
High gold prices assume significance as marriage season in India is set to arrive by April and high prices can dent demand. Gold prices on Monday surpassed a record high of Rs 43,500 per 10 grams.
"We continue to maintain our positive bias on gold, targeting the level of Rs 44,700 followed by Rs 47,000 maintaining support at Rs 40,300 followed by Rs 39,100 over the next 12 to 15 months," Motilal Oswal said in a note.
"In the last couple of sessions, we have witnessed a sharp rally in gold prices as until now there is no breakthrough of an antidote for the virus and at the same time, stimulus announcements by the PBoC is suggesting that outbreak of virus could derail the pace of Chinese economy," the brokerage firm highlighted.
In China, the epicentre of the outbreak, coronavirus related deaths increased to 2,663.The deadly virus has infected more than 77,658 people in China and was described by President Xi Jinping as the "largest public health emergency since the founding of the country".
Sparking fears of the virus outbreak turning into and pandemic, cases in Italy, South Korea and in Iran have risen sharply. The European Union (EU) has announced a new aid package worth 232 million euros ($252 million) to boost global preparedness, prevention and containment of the fast-spreading coronavirus.
Gold prices have been on the rise ever since US President Donald Trump decided to impose tariffs on China back in 2018. At the start of this year, trade war related uncertainties started to fade-off and most market participants were expecting gains in gold to be capped.
"But with trade war uncertainty triggers and now the outbreak of Coronavirus is helping the safe haven asset to outperform most global asset classes," the brokerage firm said.