Gold hit record highs in India last week and is still holding above $2,000 per ounce. However, this volatility has led to a decline in demand for gold and jewellery in India.
Edward Morse, MD & Global Hd – Commodity, Citi Group, believes that gold prices could go up to $2,400 an ounce, indicating that he remains bullish on the precious metal.
Morse said, “We certainly think it will go to $2,400 an ounce. Our probability on that is is fairly high. We remain bullish on gold. But we have to remind investors that this is a choppy road, and they need patience.”
Morse also said that silver is seeing a strong demand. However, he expects the ratio between the prices of gold and silver to widen over time.
“We are seeing demand being strong, we think silver has another 10 to 15 percent upside to it. It is not the first choice for investors against gold. But we do definitely think that there’s room for upside. With that upside however, we have much more upside in gold. So we think the ratio between gold and silver is likely to widen over time,” he added.
On the other hand, Morse was bearish on palladium and platinum. He said, “We think these are kind of short-term, noisy movements that we are seeing in the market. But definitely we think the turning point has finally come on palladium demand, there are supply issues that can affect it from time to time. So we were keeping up our more bullish view on platinum and palladium. But at the moment, we are neutral to bullish on both.”
First Published: May 9, 2023 4:52 PM IST