Gold acts as a hedge against inflation, and historically its value has appreciated during uncertain times, war, pandemic, or an economic slowdown. Since Gold is an international commodity priced in US dollar, any depreciation in rupee will lead to a further rise in prices of gold. "
Keeping this in consideration, why gold price is increasing now?
So, investors move their money from volatile holdings like stocks to safe havens like gold. And that flocking drives up the price. “When an adverse event occurs that lingers for a while, investors tend to pile their funds into gold, which drives up its price due to increased demand,” Investopedia continues.
Also, will gold price go down in 2020?
After giving a return of 23.74 percent in 2019, gold is likely to continue its upward trajectory, and prices are likely to touch $1,800/ounce, or around Rs 50,000-55,000 per 10 gram in rupee term by the end of 2020. The precious metal has gained Rs 6,794, or 17.31 percent in 2020 so far.
What will happen to gold in 2020?
Results from a certain research has predicted that the price of gold will surge by at least 260% at $5,000 an ounce by the year 2020. The prediction is quite bold and only three big catalysts can actually help gold hit a price of $5,000 an ounce in just three years and six months (2020).
Will gold price go down after lockdown?
Kolkata: Sales of old gold are likely to surge once the 21-day lockdown is over as people will likely liquidate the yellow metal, which is now trading at Rs 45,000 per 10 grams, to generate cash in hand. “After the lockdown is over, people will try to spend money to uplift their mood.