Gold price may hit Rs 55,000 per 10 gm by end of 2020, say experts
Gold price today in the retail bullion market is around Rs 50,000 and the market experts are of the opinion that investors have no other option but to continue buying this precious metal.
Gold price today in the retail bullion market is around Rs 50,000 and the market experts are of the opinion that investors have no other option but to continue buying this precious metal. Apart from this, recent US-China stand-off over Hong Kong has further fueled rates. According to experts, the way we have been witnessing rising cases of the COVID-19 patients in the US and equity markets still under pressure from the virus, gold is expected to remain investors' haven and by the end of 2020, its landing cost may hit Rs 55,000 per 10 gm.
Speaking on the reason for continuous rise in gold price, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "Gold price is rising because of big investors pumping their surplus money into buying this metal as equity and other investment options are badly hit by the COVID-19 pandemic. Apart from this, the global economy is also feeling the heat of Coronavirus and to maintain liquidity in the markets, the majority of the central banks are printing more of their national currency and that includes the US too. So, this has led to rise in inflation that is also supporting gold price rally."
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The IBJA National President went on to add that currently the landing price of gold in the retail bullion market is around Rs 50,000 per 10 gm and if Coronavirus doesn't get controlled, then we can witness the rate rising to around Rs 55,000 per 10 gm by the end of 2020.
On the global triggers that is supporting gold price, Amit Sajeja, Associate Vice President at Motilal Oswal said, "In international markets, gold price has sustained above $1,750 per ounce levels, which means it has broken its previous range of $1,690 per ounce to $1,750 per ounce mark." Sajeja said that now spot gold is trading in the range of $1,750 per ounce to $1,815 per ounce levels. He said that the current standoff between China and the US over Hong Kong is fueling gold price and in immediate terms, it is expected to scale around Rs 1000 per 10 gm from its current levels.
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