Dhanteras 2020: Gold is down about 11% from an all-time high of Rs 56,379, registered in AugustIncreased demand during the Dhanteras and Diwali festivals often pushes gold prices higher.
However, as the yellow metal scaledrecord peaks before the onset of the festive season, many buyers may delay purchases.
On Friday, despite the Dhanteras festival- which is typically considered auspicious for purchasing gold and other metals - gold traded in a narrow range.MCX gold futures - the benchmark for domestic gold rates - traded around Rs50,679.5 on Friday.A look at gold returns between Dhanteras festivals shows that gold is, in fact, headed for its best annual return since 2011.
At the current level, the contractis up more than 32 per cent since Dhanteras 2019.YearMCX FuturesDhanteras-To-Dhanteras Return (%)202050679.532.4320193826920.712018317027.11201729598-1.6120163008217.11201525686-6.53201427481-7.86201329826-6.1420123177816.1520112735937.52(Source: MCX data)Increasing coronavirus-led lockdowns in Europe and the USelection uncertainty have driven gold rates in the recent past, after the domestic futures scaled an all-time high of Rs 56,379 in August this year.Gold has surged over the past few months due to the uncertainty around the coronavirus pandemic and its impact on global economy, and changes in the foreign exchange rates.In a broader trend, it has been appreciating since 2018, with a more intensified upmove over the past few months due to COVID-19-related lockdowns, say analysts.