Year 2021: Gold will continue to glitter
India
Published: Monday, December 28, 2020, 11:52 [IST]
New Delhi, Dec 28: Gold, always considered a safe haven for investment in uncertain times, is likely to glitter more and even soar to Rs 63,000 per 10 grams next year amid expectations of fresh stimulus measures and weaker American dollar.
In 2020, the economic and social uncertainties triggered by the coronavirus pandemic turned the spotlight on gold as a safe haven. The price of the yellow metal reached an all-time high of Rs 56,191 per 10 grams at MCX and USD 2,075 an ounce in the international market in August.
A sharp turn in global monetary policies that led to a low interest rate scenario and unprecedented liquidity, which began in mid-2019, gave a boost to gold price in all major currencies, making the yellow metal attractive for investors.
Gold likely to touch Rs 63,000 per 10 grams
By PTI| Posted by Neha | Published: 27th December 2020 9:38 pm IST source/twitter
Mumbai: Gold, always considered a safe haven for investment in uncertain times, is likely to glitter more and even soar to Rs 63,000 per 10 grams next year amid expectations of fresh stimulus measures and weaker American dollar.
In 2020, the economic and social uncertainties triggered by the coronavirus pandemic turned the spotlight on gold as a safe haven. The price of the yellow metal reached an all-time high of Rs 56,191 per 10 grams at MCX and USD 2,075 an ounce in the international market in August.
Synopsis
Investment consulting company Millwood Kane International Founder and CEO Nish Bhatt opined that easy liquidity pumped in by central banks to boost growth led to investors flocking to gold, which is considered a safe haven.
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World Gold Council Managing Director (India) Somasundaram P R said high prices and logistical issues due to lockdowns affected consumer demand in all consuming markets.
MUMBAI: Gold, always considered a safe haven for investment in uncertain times, is likely to glitter more and even soar to Rs 63,000 per 10 grams next year amid expectations of fresh stimulus measures and weaker American dollar. In 2020, the economic and social uncertainties triggered by the coronavirus pandemic turned the spotlight on gold as a safe haven. The price of the yellow metal reached an all-time high of Rs 56,191 per 10 grams at MCX and USD 2,075 an ounce in the international market in August.
The dollar could weaken on the back of more stimulus and that could help gold prices rise once again. Also, inflationary expectations due to the massive stimulus can be seen as a positive factor that could attract investment buying once again in 2021, he said.
The political risk in the US due to a weak majority in the Senate could make things difficult for the incoming Joe Biden-led administration to push reforms and that could aid in the bullion s upward movement, Thiagarajan said. The physical demand (for gold) from India and China will take centre stage in 2021, which has been weak for the past few years and could see a strong revival. We expect prices to test Rs 60,000 or USD 2,200 at least in 2021, provided the rupee remains stable too, he opined.