Mumbai: Gold, which lost its sheen to some extent in the second half of 2021, is likely to regain the glitter in the New Year and cross the Rs 55,000-per-10-grams level amid pandemic woes, inflation worries and stronger US dollar.
After a stellar run up in 2020 when the yellow metal fouched a record high of Rs 56,200 on the MCX in August, the prices are near Rs 48,000 per 10 grams now. This is roughly 14 per cent lower from the all-time highs and 4 per cent lesser compared to January 2021 levels.
All said, the current level is still 3 per cent higher than overall interna tional prices, largely thanks to a weakening rupee, CommTrendz Co-Founder and CEO Gnanasekar Thiagarajan said the reason behind the underperformance this year was the rush of liquidity in the equity markets.
Meanwhile, the possibility of more Covid restrictions being imposed for Christmas and New Year holidays loomed over several European countries as the Omicron variant spread rapidly. US health officials urged Americans to get booster shots, wear masks and be careful if they travel over the winter holidays, Thiagarajan said.
According to him, tightening of rates would make the US dollar more appealing relative to currencies bound for relatively looser monetary policies such as the euro and yen. Spot gold was at over $1.791 an ounce level in the international market while in India, MCX gold futures was at Rs 47.710 per 10 grams on December 29.