Kamal Ghorui
MUMBAI: If the relentless upsurge in bullion prices over prolonged war between Russia-Ukraine and the turbulence in the Middle East were not enough, the actual breakout of war in West Asia has aggravated rates once again.Bullion traders and their associations speculate that gold could attain Rs 2 lakh per 10 gm and silver may well scale Rs 3.5 lakh per kg of the conflict does not abate swiftly.Kanaya Kakad, joint treasurer of IBJA (India Bullion & Jewellers Association) said Tuesday, “The situation is going to change completely. According to me, gold will be worth $6,000 dollars. In Indian rupees it could scale Rs 2 lakh per 10 gm. This is just the start of the war. What happens is when a war starts, all central banks start to purchase gold because they repose faith in it And the US dollar is getting weaker. Because of this, in the future, everyone will place their faith in gold. All currencies will be converted into gold. Many currencies are war orientated. As yet big countries are not involved in this [war] that can be involved in the future — for example, China, Russia and the European countries. If that happens, then one will see new heights in the gold and silver industry as well as the oil industry. This will be a critical time.”Conversely, Surendra Mehta, national secretary of IBJA said, “It [Gold] is actually not rising. Gold has seen strong resistance beyond $5,400 in the spot market inspite of war situation. This is not a good sign at present because it seems gold is being sold off to buy arms and ammunition by a few small countries to protect themselves. A strong recovery in gold beyond $5,474 can only take gold to $5,900. Otherwise gold is likely to remain range bound between $5,180 to $5,474.“
