Mumbai: India gold extended gains on Wednesday morning to a record high tracking strong overseas markets, and analysts expect the bullish trend to continue, and see gold breaching Rs20,000 per 10 grams by November.
However, a strong rupee, which makes the dollar-quoted yellow metal cheaper, kept the upside limited, analysts said.
December gold on the Multi Commodity Exchange (MCX) struck a new record of 19,615 rupees per 10 grams, surpassing the previous peak of Rs19,537 struck in the previous session.
At 10:53am, the contract was trading just off the record high at Rs19,571, up 0.30%.
“We may end-up at around Rs20,000 by post-Diwali, and move along with a rally driven by heavy fund flows, investment buying overseas,” said Harish Galipelli, head of research, JRG Wealth Management.
Overseas gold hit a fresh record high, the eighth in the past nine consecutive sessions, riding on dollar weakness and market anticipation on more quantitative easing from the US Federal Reserve.
“Gold has seen a consolidation break-out at 19,350, buying could be done at 19,400, with a stop loss of 19,200, targeting 20,000 in one month,” said Amrut Deshmukh, senior analyst with Way 2 Wealth Securities.
Domestic gold moves in tandem with international markets, and rupee also plays an important role in determining the landed cost of the imported yellow metal.