Dhanteras muhurat time for gold, silver buying here | Very auspicious occasion; know what market experts say

Dhanteras 2020 date, time muhurat: Precious metal has become more precious than ever with its stellar performance and clocked almost 44 percent returns at its peak this year and even after the recent correction is still holding steady with gains of around 30% year to date. However after the steep rise in prices, the question that comes to mind is whether this Bull Run is over or is it a breather before the next leg of up move!!

Dhanteras 2020 Muhurat: investment demand for gold witnessing a sharp rise as the yellow metal continues to outperform major asset classes this year: Reuters

Dhanteras 2020 date, time muhurat: Considering the fact that gold is an evergreen asset, anytime is a good time to Buy gold, but it certainly assumes more prominence around the festival of Dhanteras and Diwali when it is considered very auspicious to buy gold especially or some other metal item, preferably precious one. And why not? Since ages gold has proved itself in the test of time as a wealth creator, a store of value and an excellent investment avenue to diversify one’s portfolio.

First of all know the Dhanteras shopping muhurat:

Buying date- 12 November, 2020, Morning 11:20 to 12:04 Abhijit muhurat

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Dhanteras date- 13 नवंबर, 2020

On 13 November there will be Dhanteras shopping or buying muhurat from 7 to 10 in morning.

Second auspicious on that date for Dhanteras muhurat is in afternoon, from 1 to 2.30.

Dhanteras Puja Muhurat is in evening from 5:28 to 5:59.

Sugandha Sachdeva, VP-Metals, Energy & Currency Research of Religare Broking says that Gold has remained the most preferred asset this year due to its safe haven status amid the economic distress caused by the coronavirus crisis, wherein it tested record highs of close to Rs 56191/10gms at domestic bourses in August. Precious metal has become more precious than ever with its stellar performance and clocked almost 44 percent returns at its peak this year and even after the recent correction is still holding steady with gains of around 30% year to date. However after the steep rise in prices, the question that comes to mind is whether this Bull Run is over or is it a breather before the next leg of up move!! To understand this, investors need to examine the assemblage of factors which are dictating the roadmap for metal’s path ahead.

Looking at the current landscape, the most talked about event has concluded with Joe Biden’s victory in the US presidential election, ending the nail-biting suspense which could be seen as a positive trigger for gold prices as market is pinning hopes on roll out of a large stimulus package soon, which could result in higher inflation. The scenario could be ideal for higher gold prices as gold is seen as a perfect hedge against inflation. Alongside, the US dollar could remain under pressure as tighter restrictions could be expected under Biden’s regime to contain the new wave of virus spread in the US. However, a Biden presidency may face a Republican Senate, which would limit the quantum of a stimulus package and it may also get delayed. Still, even in the absence of a large fiscal aid, Fed may come out with further monetary stimulus to prop up the economy which would again keep the dollar under check, and continue to glorify precious metal’s charisma as an alternate avenue to park funds.

Apart from the several macroeconomic factors, investors globally were seen scrambling for Gold ETFs, with investment demand for gold witnessing a sharp rise as the yellow metal continues to outperform major asset classes this year. Total gold backed ETF holdings worldwide hit a record high of around 3880 tonnes, witnessing inflows of almost 1003 tonnes this year. Further, investment demand is likely to remain strong in near term as global economies are struggling to bounce back from the pain caused by the Covid-19 crisis. As the festive season is round the corner, a surge in physical demand could be expected after a muted third quarter. Coming to central banks, gold demand is expected to pick up in coming months as those who stayed away due to high prices, are likely to participate now after the decent dip in prices. Also, deterioration of soft currencies amid the Covid-19 situation would compel central banks to add more hard currency to diversify their reserves away from dollar which is witnessing significant erosion in value.

Besides, fear of a second wave of pandemic across the US and Europe has led to lot of uncertainty and dimmed hopes of a V-shape economic recovery. Considering the situation, the Bank of England voted recently to maintain the rates at their historic lows and also increased its government bond buying programme by an extra £150 billion which will again be a positive trigger for prices. Though, there is lot of enthusiasm about the COVID-19 vaccine trials but when would it be available to masses, concrete response is still awaited. Any development regarding the availability of vaccine will be closely watched and would certainly have short term ramifications for the precious metal.

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While syncing the facts with price outlook, it seems that the recent dip in prices is a correction to smooth out a steep move and looks primed to entice buying interest all over again. Prices are finding cushion close to Rs.49200/10gms ($1850/oz) mark, followed by the major support which rests at Rs.47700/10gms ($1750/oz) for a medium term perspective. The upwards price action could resume above $1975/oz resistance level that may further fuel the rally towards Rs.53700/10gms ($2015/oz) in near term and then Rs.65000/10gms($2400/oz) from a long term perspective.

To sum up, the overall backdrop favors further upside in gold from a long term perspective, but there can be short term volatility in prices. If one has a slightly long term perspective, dips could be used as a buying opportunity. While looking for options to invest in gold, one can chose from a variety of options as per their objectives and suitability, be in investing in gold ETFs which provide high liquidity, price transparency and easy entry/exit without having to worry about storage or theft, or opting for Sovereign Gold Bonds if one has a long term horizon of 5 to 8 years as SGBs also provide an additional interest of 2.5%per annum. Even there is an exemption from capital gains tax if held till maturity. One can also gain exposure in gold through SIP mode in gold funds where you get the benefit of rupee cost averaging and you also do not need a Demat account. However, if someone understands the dynamics of market and can actively manage, gold futures are a good option wherein you can trade without having to pay full amount right away. Several variants are also available- be it 1gm, 8gm, 100gms or 1 kg lots and one can even take physical delivery.

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gold Gold ETF