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‘At this price, investors will be willing to put in the resources required to produce more gold in India. Since these assets already exist, the timelines will be much shorter than any new project,’ says Vedanta Chairman Anil Agarwal.
Vedanta Chairman Anil Agarwal says this is the best time for India to revive and revitalise its existing gold assets.
At a time when the gold prices have surged significantly in the past few weeks, Vedanta Chairman Anil Agarwal on Monday said India produces only one tonne of gold every year against the demand of 800 tonnes, adding that it is the best time for India to revive and revitalise its existing gold assets.
“We have seen it before, whenever there is great uncertainty in the global economy, the price of gold rises to record highs. As the safest investment, gold is going to shine. Forecasts expect it to rise well above the current $3000 per ounce level,” Agarwal said in a post on X.
He added that this is the best time for India to revive and revitalise its existing gold assets. “We only produce 1 tonne of gold every year and consume around 800 tonnes. The difference is imported.”
“At this price, investors will be willing to put in the resources required to produce more gold in India. Since these assets already exist, the timelines will be much shorter than any new project. Let’s seize the opportunity,” Agarwal added.
Gold Prices Today
Gold has seen a sharp runup, mostly due to worries about the possible economic effects of President Trump’s enacted tariff measures. It hit the $3,000 an ounce milestone.
Currently, it is hovering around $3,025.1 an ounce on the New York-based COMEX. Silver also also surged sharply and is currently trading at $33.28 an ounce.
Gold prices have been rising since December 18, which is a result of multiple concurrent worries. The execution of Trump’s tariff policies, inflation pressures, the expanding US fiscal debt, and geopolitical concerns in the Middle East and Ukraine have all influenced market movement. Due to these factors, gold futures have risen by an astounding 17% this month, from about $2620 to $3065.
‘A Correction May Be Imminent’
According to analysts, gold prices have jumped shaply and there might be some correction now before further rally.
“Gold after achieving the $3,000 (Rs 88,000) milestone, and extending the rally to $3,065 (Rs 89,800), Gold is feeling the exhaustion now. It seems prices are topping out in the short term, we could see profit booking and price retracement at these levels,” Renisha Chainani, head of research at Augmont, said.
She added that a correction may be imminent, according to recent price behaviour following an impressive gain.
“Gold has support at $3000-2982 while resistance at $3044-3060. Silver has support at $32.90-32.70 while resistance is at $33.32-33.55. In INR gold has support at Rs 87,440-87,080, while resistance at Rs 88,050-88,450. Sliver has support at Rs 96,750-96,050 while resistance at Rs 98,720-99,550,” Rahul Kalantri, vice-president (commodities) of Mehta Equities, said.