No. of views : (9748)
Increasing trend of gold prices: Prospects to go up by 50%!
Posted on: 21/Apr/2020 2:16:24 PM
Even as the whole country has folded up with the imposition of the lockdown as a preventive measure against the spreading of the raging coronavirus pandemic, the price of hold, the most coveted item of most people, has kept going up gradually, crossing new peaks!
The public expects that once lockdown is withdrawn and the jewelry shops resume, the price of gold may come down!
However, the stock-market experts have predicted that the trend of rising gold prices will continue and there are prospects that the gold price may increase by 40% to 50% of the present level!
For millenniums, gold has remained one of the most coveted items by people all over the world! Right from the early ages, the desire for gold has not diminished even now!
Apart from being the scale for assessing people’s wealth status, gold plays a prominent part in the country’s economy as well!
As money circulation was scarce in the earlier period, consumption of gold was less. After that, as there was a gradual increase in the economic status of the people, the consumption of gold started increasing.
On a world standing, India ranks 2nd in consumption of gold! An average of 800 to 900 tons of gold are imported every year in India.
Even as the consumption of gold increased, its price also started increasing!
Due to some important factors such as the international economy status, the value of Indian Rupee against the US$, etc., the price of gold started increasing gradually from last June (2019).
As on 1st June, 2019, the price of gold per sovereign was Rs. 24632 and as on 19th June, it was Rs. 25176 per sovereign.
After that, the te gold price started shooting up and as on 24th August 2019, the price of gold per sovereign crossed the Rs. 30000 mark and crossed a new peak!
Later, though the gold price kept fluctuating, as on 4th September, gold price crossed Rs. 30000 sending shockwaves!
By the start of the current year, the price of gold shot up to unprecedented levels. Especially, on 3rd January, a sovereign of jewelry gold crossed Rs. 30000. The main reason for the rising price was the tension between the USA and Iran.
Subsequently, the price of gold went up again on 8th January and touched a new peak! Gold sold at Rs. 31175 per sovereign.
Following this, due to the coronavirus pandemic effect, the p price of gold touched an unprecedented historic peak on 24th February - the price of gold per sovereign was Rs. 33338!
Later, the gold price kept fluctuating for some time; as there were tensions due to possible obstacles in the economic growth, gold price shot up haphazardly during the 1st and 2nd week of April - on 4th April, gold was sold at price crossing Rs. 34000 per sovereign - again, an unprecedented historic peak.
Subsequently, it was sold at Rs. 35000 on 10th April, Rs. 36000 on 14th April, thus touching new peaks!
News has been released that there may be economic recessions faced by more than 170 countries in the world due to the harmful effects of the raging coronavirus pandemic!
As such, investors view that gold is the best possible investment. So, the demand for gold increased being the main reason for gold price to shoot up again.
In this regard, stock-market expert P. Shyamsundar shared:
“The rising trend in gold prices started in the year 2019. The main reason for this was the trade war between the USA and China. The other reason is the tension that the economic recession caused by the raging coronavirus pandemic when countries have been constrained to announce lockdown conditions to prevent its spread leading to the closure of all industries thereby affecting the economy directly!
The 3rd reason is that in order to stabilize the economy, the American Federal Bank reduced the interest ration 3times. As the interest rate for the money deposited in the bank reduced, these investors started preferring to invest in gold! This also led to a price increase in gold.
The 4th reason was the competition between Russia and Saudi Arabia on crude oil production. As most countries were constrained to declare lockdown conditions as a preventive measure against the raging coronavirus pandemic, the demand for crude oil went down drastically, by more than 60%! This led to the price of crude oil per barrel crashing down to an unprecedented low over the last 20 years - coming down to the US $ 15 per barrel.
Subsequently, there was an apprehension among the investors that the banks and financial organizations which had invested in the crude oil-producing countries may be harmed! This tension has also led to a conducive environment for more gold investment!
The 5th reason for the gold price increase is the depreciation of the Indian Rupee against the US $.
Presently, the price of the jewelry gold per gram is Rs. 4500. But, there are prospects that this will go up by 40% to 50%!”
The vice-president of the Indian Jewellery Traders’ Federation, S. Santhakumar, shared in this regard:
The impact of the raging coronavirus pandemic has severely affected all sectors! The sectors of the stock-market, Banking and real estate have all been constrained to stop functioning! If this situation prevails, then there are prospects only for the gold price to go up even further! There a possibility of gold price per sovereign crossing Rs. 40000 even!”
All of us need only to wait and watch whether the gold prices will come down much to the relief of the people when the lockdown situation is withdrawn and the jewelry shops reopen or may the gold price may go further up for more shocks!
As of 1st June 2019, the price of gold per sovereign was Rs. 24632. Then, this started increasing gradually and as of 14th April, it crossed Rs. 36000. On that date, the price of gold per sovereign was Rs, 36176. With this, it is noteworthy that over the last 10 months, the extent of the increase in the gold price per sovereign is Rs. 11544!
Post your requirement - We will connect with the right vendor or service provider
