Gold may cross Rs 1,80,000 per 10 grams by Diwali, says Kedia Commodities chief Ajay Kedia
Ajay Kedia of Kedia Commodities says gold could top Rs 1,80,000 per 10 grams by Diwali or the end of 2026, as global prices edged up.
Prime Minister Narendra Modi has appealed to people not to buy gold. Even so, it is very hard to stop Indians from buying it. Gold is seen both as jewellery and as a good investment option, so the inclination to buy it is always strong.
There was no trading on the commodity market today, October 2. For this reason, IBJA did not release gold and silver rates either. The domestic market stayed somewhat quiet, but gold looked a little brighter in the international market. The question now is where gold prices will go by Diwali.
According to Ajay Kedia, chairman of Kedia Commodities, the price of gold could cross Rs 1,80,000 per 10 grams by Diwali or by the end of 2026. This is his estimate, not a firm outcome.
Gold prices rose slightly in the international market today. Returns on US bonds have come down, and Federal Reserve officials have indicated they need more time before taking the next interest rate decision. Meanwhile, prices are also climbing in the energy sector on fears of rising tension in the Middle East.
In Singapore in the afternoon, spot gold rose 0.3 per cent to $4,190.16 an ounce. Silver gained 0.6 per cent to $61.38 an ounce, after a rise of 0.9 per cent the previous day. Platinum and palladium prices also moved up. The dollar spot index fell 0.1 per cent against the US dollar.
On Thursday, US Treasury yields fell across the board. The 10-year yield dropped below its 24-year high. As concern grew over France's economic condition, investors began looking to safer options.
Gold pays no interest, so higher returns generally hurt it. This was a major reason gold fell 6 per cent in September.
Federal Reserve Vice Chair Philip Jefferson said it may take more time to assess whether further interest rate increases are needed. This has reduced the market's expectations of an early rate rise. At the start of the week the probability was 70 per cent, but traders now see only a 26 per cent chance of a rate increase in October.
