Latest news with #PrathameshMallya
Mint
3 days ago
- Business
- Mint
Gold price remains volatile amid geopolitical tensions. What should be your portfolio diversification strategy?
Gold rate today: Precious metal saw a marginal downward trend on Tuesday on Donald Trump's tariff tensions with China and the European Union, continued geopolitical instability from the Russia-Ukraine war, and investor caution ahead of the upcoming US Federal Reserve interest rate announcement. On Multi Commodity Exchange (MCX), August gold futures declined by ₹ 308, or 0.31 per cent, to trade at ₹ 97,645 per 10 grams. Gold prices in the international market experienced a slight decline on Tuesday, pulling back from nearly a four-week high. As of 0249 GMT, spot gold slipped 0.3% to $3,369.98 per ounce, after earlier reaching its highest point since May 8. U.S. gold futures remained unchanged at $3,390. In the previous trading session, gold had surged around 2.7%, marking its strongest one-day increase in more than three weeks. Gold as an asset has been a good diversifier in any portfolio for decades, according to market experts. According to brokerage firm Angel One report, Gold demand and supply are inherent factors defining the volatility in the asset. The supply has been consistent around more than 4000 tons every year for more than the past decade. Jewellery contributes more than 50% of the overall demand for gold historically and this trend has been similar for more than a decade. Central banks have been increasing their interest in the yellow metal since the covid-19. Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One, believes that the ongoing trend in gold prices will likely continue in 2025, boosting the yellow metal prices for the second half of 2025. Mallya further said that investors should wait for meaningful correction towards Rs.85000/10 gms for accumulation and recommends to allocate atleast 10 per cent of their portfolio allocation towards gold for better diversification. 'Gold prices have had a good run in the past one and half year as can be seen in the chart alongside. However, for investors with a long term perspective, they should accumulate on every dips taking benefit of value average for higher returns,' he said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Wall Street Journal
26-05-2025
- Business
- Wall Street Journal
Gold Edges Higher Amid Geopolitical Tensions
2339 GMT — Gold edges higher in the early Asian session. Russia recently launched its largest-ever drone-and-missile assault on Ukraine, according to Ukrainian officials, defying President Trump's calls for an end to the bombardment. For this week, geopolitical tensions will likely continue to lead safe-haven buying for investors worldwide, Angel One's 543235 -2.97%decrease; red down pointing triangle Prathamesh Mallya says in an email. The rally in the precious metal could extend toward $3,500/oz, says the deputy vice president of Research, Non-Agro Commodities and Currencies. Spot gold is 0.1% higher at $3,347.12/oz. (
Mint
28-04-2025
- Business
- Mint
Gold prices rally 30% to hit ₹1 lakh since last Akshaya Tritiya. What level can they hit by next year?
Gold Price Outlook: A sharp 30% rally in gold prices since last Akshaya Tritiya to levels above ₹ 1 lakh has sparked a wave of FOMO (fear of missing out) among investors in other asset classes. Gold prices, which were trading at ₹ 73,240 per 10 grams on last Akshaya Tritiya, are now in the range of ₹ 94,000–95,000 per 10 grams, after briefly touching the coveted ₹ 1 lakh mark. Gold has been on a bull run since mid-2024, as increased uncertainty around policies and an uncertain economic situation ahead for the major economies has spurred gold buying. According to data from Ventura Securities, gold has delivered consistently positive returns over the past eight years, with prices increasing during every Akshaya Tritiya period since 2018. Year Price ( ₹ /10g) Return (%) 2025 ₹ 95,900 31% 2024 ₹ 73,240 22% 2023 ₹ 59,845 18% 2022 ₹ 50,808 7% 2021 ₹ 47,676 2% 2020 ₹ 46,527 47% 2019 ₹ 31,729 1% 2018 ₹ 31,534 9% 2017 ₹ 28,873 -3% 2016 ₹ 29,805 11% 2015 ₹ 26,936 -11% Source: Ventura Securities With Akshaya Tritiya tithi around the corner — when purchasing gold is believed to bring prosperity, good luck, and lasting wealth — investors are facing a dilemma about whether to buy gold at such high levels. But if one goes by the target prices of analysts, buying gold on Akshaya Tritiya may spell more gains for the investors. Analysts anticipate gold prices to trade in the range of ₹ 1,04,000 to ₹ 1,10,000 by next Akshaya Tritiya, which will fall on April 19, 2026. Gold vs Silver vs Sensex Prathamesh Mallya, DVP Research - Non Agri Commodities and Currencies at Angel One, said, "If we look at this table, it clearly states that investment in gold pays good returns. Hence, one should make investments in gold from a long term perspective." From a one-year perspective, gold hitting $4,000/ounce in the international markets and ₹ 1,10,000/10 grams in the Indian markets looks very much likely, Mallya opined. Echoing positive sentiments on gold, Ventura Securities said that it sees considerable upside potential should geopolitical tensions escalate or global economic conditions deteriorate and US Federal Reserve cuts rates meaningfully. "Gold prices could rally significantly, possibly reaching $3,600–$3,700 per ounce, or ₹ 1,01,000– ₹ 1,04,000 per 10 grams by next Akshaya Tritiya. These projections reflect gold's enduring appeal as a safe haven in times of heightened uncertainty," Ventura Securities said. However, it added that gold prices could retreat in case the US Federal Reserve's interest rate cut decisions get prolonged, there is a slowdown in central bank purchases or an unexpectedly strong US economic performance. In such a scenario, it expects gold prices to correct to $3,000–$2,900 per ounce, or ₹ 90,000– ₹ 87,000 per 10 grams. Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, also expects gold prices to hit ₹ 1,10,000 by next year as outlook for gold remains largely positive amid ongoing geopolitical and economic uncertainty. 'Overall, COMEX gold prices are likely to see accelerated upside potential toward $3,800 per ounce if they sustain above $3,500 per ounce, with key support at $2,800 per ounce in the coming months. For MCX, ₹ 81,000 per 10 grams will act as crucial support, while prices could rally to ₹ 1,10,000 if they remain above ₹ 99,350 per 10 grams,' said Chainwala. Even as gold price outlook remains solid, buying at such elevated levels also exposes investors to risks, making them question whether there is merit in investing in gold at current prices. To this, analysts responded that long-term investors should consider buying on dips once gold corrects meaningfully, as the trend in yellow metal is likely to remain firm. 'While gold prices are expected to stay elevated due to ongoing macroeconomic uncertainty, further pullbacks in the short term cannot be ruled out as market sentiment improves. Therefore, buying on dips would be advisable,' said Chainwala. Mallya also recommended a buying-on-dips strategy for long-term investors to take the benefit of the value average for higher returns. One should wait for meaningful correction towards ₹ 85,000/10 grams for accumulation, he opined.
Mint
28-04-2025
- Business
- Mint
Gold prices rally 30% to hit ₹1 lakh since last Akshaya Tritiya. What level can they hit by next year?
Gold Price Outlook: A sharp 30% rally in gold prices since last Akshaya Tritiya to levels above ₹ 1 lakh has sparked a wave of FOMO (fear of missing out) among investors in other asset classes. Gold prices, which were trading at ₹ 73,240 per 10 grams on last Akshaya Tritiya, are now in the range of ₹ 94,000–95,000 per 10 grams, after briefly touching the coveted ₹ 1 lakh mark. Gold has been on a bull run since mid-2024, as increased uncertainty around policies and an uncertain economic situation ahead for the major economies has spurred gold buying. According to data from Ventura Securities, gold has delivered consistently positive returns over the past eight years, with prices increasing during every Akshaya Tritiya period since 2018. Year Price ( ₹ /10g) Return (%) 2025 ₹ 95,900 31% 2024 ₹ 73,240 22% 2023 ₹ 59,845 18% 2022 ₹ 50,808 7% 2021 ₹ 47,676 2% 2020 ₹ 46,527 47% 2019 ₹ 31,729 1% 2018 ₹ 31,534 9% 2017 ₹ 28,873 -3% 2016 ₹ 29,805 11% 2015 ₹ 26,936 -11% Source: Ventura Securities With Akshaya Tritiya tithi around the corner — when purchasing gold is believed to bring prosperity, good luck, and lasting wealth — investors are facing a dilemma about whether to buy gold at such high levels. But if one goes by the target prices of analysts, buying gold on Akshaya Tritiya may spell more gains for the investors. Analysts anticipate gold prices to trade in the range of ₹ 1,04,000 to ₹ 1,10,000 by next Akshaya Tritiya, which will fall on April 19, 2026. Gold vs Silver vs Sensex Prathamesh Mallya, DVP Research - Non Agri Commodities and Currencies at Angel One, said, "If we look at this table, it clearly states that investment in gold pays good returns. Hence, one should make investments in gold from a long term perspective." From a one-year perspective, gold hitting $4,000/ounce in the international markets and ₹ 1,10,000/10 grams in the Indian markets looks very much likely, Mallya opined. Echoing positive sentiments on gold, Ventura Securities said that it sees considerable upside potential should geopolitical tensions escalate or global economic conditions deteriorate and US Federal Reserve cuts rates meaningfully. "Gold prices could rally significantly, possibly reaching $3,600–$3,700 per ounce, or ₹ 1,01,000– ₹ 1,04,000 per 10 grams by next Akshaya Tritiya. These projections reflect gold's enduring appeal as a safe haven in times of heightened uncertainty," Ventura Securities said. However, it added that gold prices could retreat in case the US Federal Reserve's interest rate cut decisions get prolonged, there is a slowdown in central bank purchases or an unexpectedly strong US economic performance. In such a scenario, it expects gold prices to correct to $3,000–$2,900 per ounce, or ₹ 90,000– ₹ 87,000 per 10 grams. Even as gold price outlook remains solid, buying at such elevated levels also exposes investors to risks, making them question whether there is merit in investing in gold at current prices. To this, analysts responded that long-term investors should consider buying on dips once gold corrects meaningfully, as the trend in yellow metal is likely to remain firm. Gold is likely to stay strong for the foreseeable future, said Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution. "We believe all dips will invite buying by ETFs and central banks and this trend is unlikely to reverse near term and therefore gold will maintain its upward trajectory," Raichura added. Mallya also recommended a buying-on-dips strategy for long-term investors to take the benefit of the value average for higher returns. One should wait for meaningful correction towards ₹ 85,000/10 grams for accumulation, he opined. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 28 Apr 2025, 06:30 PM IST
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Business Standard
22-04-2025
- Business
- Business Standard
Gold breaches Rs 1 lakh mark: What's driving the surge, should you buy now?
In a continuation of its rally, gold prices surged by Rs 1,899 today, marking the fourth consecutive day of gains and pushing the yellow metal to a historic high of Rs 99,178 per 10 grams. On the Multi Commodity Exchange (MCX), the October futures contract briefly breached the Rs 1 lakh mark, touching an all-time high of Rs 1,00,484 per 10 grams, up nearly Rs 2,000 or 2%. The sharp rally is being attributed to safe-haven demand, fueled by geopolitical uncertainty, central bank gold buying, and criticism of the U.S. Federal Reserve by President Donald Trump — developments that have collectively unnerved global markets. 'Gold has surged more than 30% this year as trade tensions have caused jitters in the markets boosting the demand for safe haven assets except for the Dollar Index which has plunged by more than 4 percent this year. Strong flows to bullion-backed exchange-traded funds and continued purchases by central banks have also supported the trend," said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One. In the midst of gold's meteoric rise, Uday Kotak, founder of Kotak Mahindra Bank, took to social media platform X (formerly Twitter) to praise Indian housewives for their enduring trust in gold. The Indian housewife is the "smartest fund manager in the world", he said in a post on X, adding that governments and economists pushing high deficit spending might learn a thing or two from India, "a net importer of store of value forever!" Kotak's remark came as gold hit Rs 99,170 per 10 grams in India at 10:53 a.m., according to the India Bullion Association. "While the gold price is on an upward trajectory, the fall in USD will make gold affordable in other currencies, keeping the demand-price dynamics balanced. As the global economic development unfurls, we project the gold price to breach the USD 4,000/Oz in the international market during FY26. Domestically, it is observed that gold price witnesses a slight rise around festive season like Akshaya Tritiya, in reflection to the spike in demand. The sentimental and cultural value attached towards investing in yellow metal on auspicious occasions like this will keep the demand upbeat, irrespective of the price trend," said Colin Shah, MD, Kama Jewelry. Why is gold soaring? Geopolitical Tensions and Trade Conflicts Escalating trade tensions, particularly between the US and China, have heightened market volatility. For instance, President Trump's imposition of tariffs on Chinese goods and his criticisms of Federal Reserve Chair Jerome Powell have unsettled investors. These actions have led to a weakened U.S. dollar and increased demand for gold as a safe-haven asset . Federal Reserve's Monetary Policy and Interest Rate Cuts The Federal Reserve's decision to cut interest rates has made non-yielding assets like gold more attractive. Lower interest rates reduce the opportunity cost of holding gold, leading to increased investments in the precious metal. Central Banks' Gold Purchases Central banks worldwide, including those of India and China, have been increasing their gold reserves. This trend, known as "de-dollarization," reflects a strategic move to diversify foreign exchange reserves and hedge against economic uncertainties. " In 2024, global central bank gold purchases exceeded 1,000 tonnes for the third consecutive year (as per market data). Notably, China's policy shift allowing insurers to allocate up to 1 per cent of assets to gold could add approximately 255 tonnes to annual demand," said Value Research in a note. "The freezing of Russian central bank assets made countries realise that dollar reserves carry political risk. In response, central banks have ramped up gold buying. This isn't mere speculation—it points to deeper shifts in the global monetary system," said Dhirendra Kumar of Value Research. So, should you buy now? With rising market volatility and global uncertainties, many investors are asking: Should you rush to convert your savings into gold bars? Tempting as it may be to chase gold after its recent run-up, it's important to pause and think about its role in your portfolio. Gold isn't a growth asset. It doesn't generate income like dividends or interest. It simply sits there, looking shiny and occasionally appreciating. That's why Dhirendra Kumar consistently refers to gold as a hedge, not an investment. "It's best used to protect your portfolio during uncertain times, not to power its returns. So, consider gold only if you're underexposed. For most investors, an allocation of 5-10 per cent of the total portfolio is more than enough. That's just enough to add a layer of safety, without dragging down overall returns," said Kumar. What's the best way to invest in gold? If you're convinced about adding gold, Value Research says it is best to avoid physical gold for investment; it's better suited for cultural or decorative use. Investment-wise, it's inefficient and prone to extra charges. Sovereign gold bonds (SGBs) are the most efficient option, offering 2.5 per cent annual interest over and above appreciation and tax-free maturity gains. Gold ETFs or mutual funds are next in line, but they come with some costs. "Yet dismissing gold entirely may no longer be the correct position it once seemed. A modest allocation - perhaps 5-10 per cent of your investment portfolio - might be a reasonable hedge against currency debasement and geopolitical instability. Think of it as insurance rather than a growth investment. If you decide to include gold in your portfolio, consider whether physical gold (coins, bars), gold ETFs, sovereign gold bonds, or gold mutual funds best suit your needs. Each has distinct advantages and disadvantages regarding liquidity, costs, and security," said Kumar.
