Mumbai: India gold futures hit a new all-time high early Wednesday on strong overseas markets, amid expectations that the yellow metal would continue to mark new highs in the medium-term.
Gold is expected to firm further as investors rush to take refuge in safe haven assets amid the deepening economic gloom, analysts said.
At 12:14 p.m., COMEX gold for April delivery was $5.2 higher at $972.7 an ounce, after hitting a high of $975.4 on safe haven purchases.
“The outlook is bullish due to unprecedented demand for (gold) ETFs,” said Devarsh Vakil, manager-research, Anagram Capital, adding that any decline would be an opportunity to buy with a medium-term perspective.
But Vakil expects profit-taking to creep in at higher levels as ”traders already long can book profits at 15,700.”
”These are high levels, I would not recommend traders to buy or sell aggressively,” he added.
Futures on the continuation charts were 0.17% higher at Rs15,518, after hitting a new all-time high of Rs15,617 per 10 grams.
The contract gained more than 5% in the last session.
“Gold is emerging as a new asset class on speculative and investment demand coupled with global concerns,” said Debjyoti Chatterjee, associate vice president with MAPE ADMISI Research in Mumbai, adding that the yellow metal gold has decoupled from the dollar and crude.
“If any recovery has to happen, it would depend on circumstances in the European and the US markets (later in the day),” said Chatterjee.
He expects gold to trade in the range of Rs15,300-Rs15,650.