Gold price outlook: Motilal Oswal says yellow metal to breach Rs 47,000 per 10 grams levels

Brokerage firm Motilal Oswal in its outlook, expects gold prices in India to surpass Rs 47000 per 10 grams levels in the next 12 to 15 months over growing worries due to the coronavirus outbreak. The virus which originated in China is now a global health scare with 30 countries currently under its grip.

The surge in gold prices could be because of the marriage season that sets in April. The demand for gold rises manifold around this time. High prices of the yellow metal could likely put a spanner on the demand situation, according to the brokerage house. Gold prices on Monday surpassed a record high of Rs 43,500 per 10 grams.

"We continue to maintain our positive bias on gold, targeting the level of Rs 44,700 followed by Rs 47,000 maintaining support at Rs 40,300 followed by Rs 39,100 over the next 12 to 15 months," Motilal Oswal said in a note.

"In the last couple of sessions, we have witnessed a sharp rally in gold prices as until now there is no breakthrough of an antidote for the virus and at the same time, stimulus announcements by the PBoC is suggesting that outbreak of virus could derail the pace of Chinese economy," the brokerage firm further said.

The Coronavirus related deaths have crossed 2600 mark in China, the epicenter of the outbreak. The deadly virus has infected more than 77,658 people in China and was described by President Xi Jinping as the "largest public health emergency since the founding of the country".

The epidemic has created a wave of shocks as cases continue to rise in Italy South Korea and in Iran.

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