Gold prices are rising in the world market. Its price is also rising in India. However, according to experts, the current time is not entirely inappropriate if there is a desire or need to buy gold. Because the price of 24 carat gold in Kolkata exceeded Rs 53,000 in August.
Gold prices have been rising again in India for the past few days. Jewelry lovers are naturally disappointed in that. Because after the discovery of the covid vaccine, many expected gold prices to fall further if the economy recovered. But the price of the metal is rising in the world market in the wake of the possibility of the US government announcing a second stimulus package. Such an incident happened last August. That time too, the price of gold reached record levels thanks to the White House stimulus package.
Since March 2020, most countries have implemented nationwide lockdowns to prevent the spread of COVID-19. This has brought the spread of the disease under a reasonable control, causing a lot of economic disruption due to the closure of trade and the cancellation of imports and exports.
While the government has announced several economic packages to support the people at this time, interest rates have fallen and many investors have begun to move away from risky assets, increasing the demand for safe havens for gold.
Initially investors expected the economy to recover quickly as the lockdown was lifted and firms resumed operations. And so, many investors began buying undervalued, high-quality stocks. However, over time, hopes of a near-term recovery are dashed and investors are looking for a safe haven for their funds.Since gold is considered the perfect hedge against inflation and economic turmoil, the demand for gold has increased.
Recent news on gold prices indicates high demand for the yellow metal, with some analysts predicting gold prices to reach ৫ 5,000 per 10 grams in the next two years. They believe that factors such as interest rates, high liquidity and the economic impact of the lockdown will have a lasting impact on the markets and therefore transmit gold price trends. They also hope that the demand for gold will continue to rise if vaccines are not introduced or the number of cases is not brought under control.
2020 and 2021 can see gold as a key component of most investment portfolios. Even if the vaccine is introduced, investors may be interested in the yellow metal for a long time because of the psychological effects of the epidemic. Gold will regain its position as a strategic asset and many investors will try to benefit from the positive price momentum.