Will gold cross Rs 2 lakh? Expert said- because of this there is going to be a boom

An estimate regarding gold prices has emerged which has surprised even market experts. Gold prices in the international market may soon break all records and touch a new historical high. Saxo Bank’s Commodity Strategy Head Ole Hansen has estimated that within the next 12 months, gold in the global market may cross the figure of $ 6000 per ounce. If this happens, then there is sure to be a huge rise in the price of gold in the Indian markets too.

Math of Rs 2.12 lakh in Indian market

At present, internationally, gold is trading around $4490 per ounce. At the same time, the price of 10 grams of gold in the domestic market has reached the level of around Rs 1.59 lakh. Now this question is bound to arise in the mind of the investor that if the price in the global market goes up to 6000 dollars, then what will it mean in India?

Its mathematics is simple. The journey from $4490 to $6000 is a huge jump of about 33.6 percent from the current level. If the Indian market also grows at the same pace, then the price of gold will directly increase from Rs 1.59 lakh to Rs 2.12 lakh per 10 grams. That means a huge increase of Rs 53 thousand per 10 grams. However, the final price in India is not determined solely by the global price. Domestic factors like movement of dollar-rupee, import duty, GST also affect it, due to which the actual price may fluctuate slightly.

5 big factors that accelerate the record

According to Ole Hansen, at present there is pressure from high bond yields, strong US dollar and inflation. But, in the long term, some very strong economic factors are continuing to support gold.

1. The first reason is de-globalization. Due to broken supply chain, countries no longer want to depend on each other, due to which the demand for gold as a safe asset is increasing.
2. The second big factor is de-dollarization. Central banks around the world are reducing their dependence on the US dollar. They are buying a lot of gold as reserves.
3. Third, the huge increasing government debt of the superpowers. This fear of economic pressure has scared investors, due to which they are placing their trust in gold instead of currency.
4. The fourth reason is the geopolitical tension in West Asia. In an environment of war, investors withdraw money from risky assets and invest it in safe places.
5. The fifth reason is the increasing demand for safe investments. Amidst the huge fluctuations in the stock or bond market, there does not seem to be any other safer option than gold.

Direct effect of crude oil prices

Crude oil is also going to play a big role in this movement of gold. The oil market is under heavy pressure due to tensions in West Asia, especially the Hormuz Strait crisis. Brent crude is currently hovering above $105 per barrel. The report suggests that even if this geopolitical tension calms down a bit, the new base of crude will remain between 85 to 95 dollars. Crude oil becoming expensive directly means increasing global inflation. The more inflation increases, the faster investors will run towards gold to protect their portfolio.