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1st Half of 2020: The rising trend and record
Posted on: 28/Jul/2020 9:38:57 AM
During the 1st half of the year 2020, gold has a tremendous record/trend - the price increased by about 25% after the somewhat reduction in March. With this, it had outperformed all the other major asset clauses!
On Wednesday, 22nd July in London, gold futures prices soared to a nine-year high of $ 1,856.60 per troy ounce!
This was very close to their record high of $1,920 an ounce hit in September of 2011. One troy ounce is equivalent to 31.1034768 grams.
The scenario
- The equity markets around the world did rebound sharply from their March lows.
- However, the high level of uncertainty surrounding the COVID-19 pandemic and the ultra-low interest rate environment supported strong flight-to-quality flows.
- Gold benefited from investors’ need to reduce risks like money market and high-quality bond funds. Gold prices in India are dictated by international prices.
- In this regard, Ravindra Rao, Head of Commodity Research, Kotak Securities, observed, “International gold prices have been on the rise in the last a few months and picked up pace amid sharp losses in the dollar, additional stimulus measures and robust investor inflows. Rising virus cases and US-China tensions have also underpinned the gold price.”
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