Friday, November 27, 2020
Home Business Gold Price May Increase to Rs 40,000 per 10 Gram by Diwali

Gold Price May Increase to Rs 40,000 per 10 Gram by Diwali

Highest gold rates to be seen this Diwali

Amid global growth concerns and heightened trade tensions between the US and China, gold prices might cross the Rs 40,000 mark by Diwali, analysts have said.

Typically, the demand for gold reflects the expectations about the future, the prices of the precious metal tends to rise amid uncertain economic situations or political upheaval.

Currently, the October contract of gold was priced at Rs 37,995 per 10 gram on the Multi-Commodity Exchange (MCX).

“Demand for the precious metal may slow down slightly owing to some easing in trade tension between US and China, but over the trend is negative. We see gold prices around Rs 39,000 to 40,000 per 10 gram by Diwali, ” said Anuj Gupta of Angel Brooking.

Gupta explained that the gold prices were surging primarily owing to the decline in global growth rate.

Gold price will get to a record high level by the end of this year. Pixabay

Experts globally are also suggesting investments in gold and other precious metals amid these uncertain times as an insurance against economic uncertainty.

“We now recommend all investors have a full allocation to precious metal investments in their portfolio,” said a Gohring and Rozencwajg report.

“We believe the bear market in gold has run its course and a new bull market has begun.”

Lower interest rate by central banks and the ongoing trade dispute between the two biggest economies, the US and China, were supporting the gain in gold prices.

Besides, latest worry came over the recession warning via bond market. The inversion in the US bond yield hit levels last seen in 2007, just ahead of the global financial crises.

gold price increase
Gold prices were surging primarily owing to the decline in global growth rate. Pixabay

This came even as the US decided to defer the rise in trade tariffs it announced earlier as major export market showed renewed signs of weakness.

Also Read: Gold Prices Surged 20 Per Cent Since January 1

Europe’s biggest economy, Germany, reported negative growth, hence nearing the risk of a recession. The UK had already reported a contraction in growth amid Brexit woes and China added fuel to fire after it released weaker than expected factory data.

Investment firm Morgan Stanley had said that if the trade war further soared via the US further raising tariffs on all goods imported from China to 25 per cent, “we would see the global economy entering recession in three quarters”. (IANS)



Most Popular

Digital Transformation Seen in Indian Firms

As pandemic accelerates digital transformation across the spectrum, a Dell Technologies report on Thursday said that 94.7 percent of Indian organizations have fast-tracked some...

Threat To Wildlife of Ganges By Waste Fishing Gear

Researchers have found that waste fishing gear in the Ganges poses a serious threat to wildlife including otters, turtles, and dolphins. The study, published in...

53% Indians Will To Switch Jobs For Remote Work

More than half of the office-goers in India are willing to switch jobs if it meant they could work remotely, said a new survey...

Doctors Suggest Flu Shots For Children & Vaccination For Adults

This year has been a double whammy. These earlier diseases are still prevalent and we have COVID added to the disease spectrum and has...

Early Birth Associated With Risks of Hospital Visit Throughout Childhood

Researchers have found that being born early is associated with a higher risk of hospital admission throughout childhood than being born at full term. Existing...

SpaceX Launches 60 More Starlink Satellites

Elon Musk-run SpaceX on Wednesday launched another successful mission carrying 60 more Starlink satellites on board a Falcon 9 rocket into low-Earth orbit that...

Space Travel Makes Cell’s Energy Production Dysfunctional

Critical parts of a cell's energy production machinery, the mitochondria, can be made dysfunctional due to space travel, says a study. The results, published in...

IT Ministry And IBM Tie Up For Education and Skilling of Youth

IBM India on Thursday said it has collaborated with the Union Ministry of Electronics and Information Technology (MeitY) to create a robust education and...

Recent Comments