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Expect gold to test $1,600 level in 2020, says commodities market expert Kunal Shah

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Gold and silver have given best returns in 2019 in a decade, with gold prices rising nearly 25 percent and silver prices gaining 19 percent.

Gold and silver have given best returns in 2019 in a decade, with gold prices rising nearly 25 percent and silver prices gaining 19 percent.
Much of the strength in gold and silver came from continuing global uncertainties. According to Kunal Shah of Nirmal Bang Commodities, the yellow metal will continue to shine.
Shah said, “It (gold) continues to look very attractive, going forward in 2020, gold is going to test $1,600 level.
Gold would be somewhere near Rs 42,000 level while silver would be in Rs 52,000-53,000 bracket on MCX in 2020, said Shah on CNBC-TV18.
Shah said that gold will rise in 2020 mainly for two main reasons-- stronger central bank buying and second was weakness in dollar.
"I think in 2020, the theme should be the US dollar is likely to weaken significantly even from the present levels. On the backdrop of that we believe that $1,600 on COMEX looks very conservative target for the gold."
"For the silver $20-21 also looks very conservative."
Shah added that the downside in Indian rupee was very limited. "70.50 per dollar should hold on and we are of the view that it can test levels of 72-72.20 per dollar going forward,” he explained.
The interest rates were expected to remain at same level. The US elections was going to be yet another trigger which would lead to a lot of uncertainties, he said.
"The US-China trade deal, the phase I deal was yet to be signed and there were going to be lot of phases there and that is what keeping the interest alive in case of precious metals."
Talking on base metals, he said, “Base metals looks very attractive to us, we are of the view that since the progress is being made in US-China deal, so the fundamental will come into the play so metals like copper where we are likely to see the deficit last year 2019 was almost 50,000 tonne. "
"This year 2020, the deficit of copper will be somewhere at 1,75,000 tonne. So, I think the prices are likely to move up going forward at least the first half of 2020 looks bullish for most of these base metals.”
He further added, “Aluminium also looks pretty attractive to us. Aluminium can conservatively see 3-4 percent upside even from the present levels and I remain quite optimistic as far as the outlook of base metal is concerned.”
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