Gold is shining

26/07/2020

Gold prices continue to rise steadily even during this great depression of the Corona period, recently the gold prices in India have also crossed the level of 50000 rupees per 10 grams when the economy of the whole world is shrinking. Then why is there a rise in gold prices? One thing that has become most expensive between the outbreak of the Coronavirus epidemic and the worldwide lockdown is why has it happened?Despite the softening in international trade and the weakening of economic activity, there is no decrease in the prices of gold. In contrast, its prices are increasing all over the world. India is considered the world's second-largest consumer of gold after China. In the first half of this year, gold prices have been very high and by the end of March, there has been an increase of about 25 percent from its low. The price of gold on 19 July 2019 was Rs 35,382, which is now 50 thousand rupees. Has reached beyond 10 grams. In the world's gold markets, gold rose 1.3 percent to $ 1,865.81 an ounce, the highest in the last decade. The weakness in the US dollar, increased worldwide coronavirus cases and the hope of more stimulus measures have raised the prices of precious metals including gold and silver.
The ever-increasing uncertainty due to the coronavirus and the tensions that have arisen between the US and China have also played an important role in this work. It is believed that until the US Federal Reserve goes to raise its interest rates again, the price of gold will continue to rise.
The rise in gold in the last one year, it is expected to have limited growth in the next six months. However, it remains to be seen how the coronavirus is doing and how the global economy performs. An increase in coronavirus cases or deaths will lead investors to move towards safer assets such as gold and silver, which will further increase the prices of these precious metals.
There is an atmosphere of fear among investors due to the corona epidemic in markets all over the world. Meanwhile, no one is digesting the reason behind the continuous rise in the price of gold. If we look at the history behind it, it has always been seen that whenever there is a possibility of loss in the stock market, other than the dollar, the price of gold is seen to be weak. Whenever there is a decline in the value of the stock markets, real estate, and bonds, etc. around the world, investors move towards gold for investment. The main reason for this is that gold is a very safe property and the risk of loss is quite low. Being highly secure means that gold can be sold and purchased fairly quickly without changing its price. Behind this strong performance of gold is the change in the supply of gold, the supply of gold has increased by 1.6 percent over the years. Investments in gold have been very good for investors. This is the reason that even today, betting on gold is taking place.

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