Gold Investment Outlook: In the last two years, gold has given excellent returns to investors. Gold touched record highs in August 2020 this year. According to experts, there will be a boom in gold next year. This year, due to the worldwide economic uncertainty caused by the Corona epidemic, investment in gold increased as a safe alternative. However, even after the introduction of the vaccine, the glow of gold is not going to fade next year. Due to fears of rising inflation, falling real yields, weak dollar and increasing physical demand for gold in major emerging markets, its luster will continue next year.
Talking about Delhi Sarafa Bazar, the price of 24 carat 10 gram gold reached Rs 59300 in August, which is today at Rs 53200. In this way, the price of gold has fallen by about 6100 rupees from the record high of August. Market experts believe that now is the right time to invest in gold. Prior to this, investment in gold has given better returns for two years and this trend will continue next year.
Gold shine will increase due to weakness in dollar
The fall in the dollar may increase investment in gold and gold prices are expected to rise due to increasing demand from emerging markets. According to Kedia Commodity Director Ajay Kedia, the Fed may keep its policy rates low in the coming times. In addition, the Fed may limit US Treasury yields to support the economy. US Treasury yields may be lower next year. If inflation remains at the current level for the next year, then lowering US Treasury yields may reduce US real yields, which will weaken the dollar and increase gold prices.
This year, the fiscal deficit increased significantly in 2020. This deficit will decrease next year, although it will still remain. In such a situation, due to the stimulus package and fiscal deficit, investors will be attracted to gold as a safe investment option.
52% return in two years
In the last two years, gold has given strong returns to investors. According to Angel Broking Deputy Vice President (Commodities and Currency Research), the equity market performed badly due to the Corona epidemic this year, while Gold has given a return of 28 per cent. Talking about 2019 last year, Gold gave a return of 24 percent. In this way, in the last two years, gold has given about 52 percent return to investors. According to Anuj Gupta, gold will remain bright next year and investors will get better returns.
Relief package will provide support
The economic outlook is getting better with the introduction of the vaccine. One situation is that if the economic recovery is better and monetary policies remain rigid and rates are high then gold prices may fall. Apart from this, another situation is that there should be an economic recovery but if the stimulus package continues and the US real yield declines, then the price of gold will accelerate. The way the circumstances are seen to be building, there is a possibility of encouragement in the next year as well and gold can be seen in brightness. Gold price may fluctuate in the first half of 2021 next year due to vaccine distribution and growth recovery.
Can touch 58 thousand level again
Gold ETFs were liquidated by investors and if the introduction of the vaccine improves the economic outlook, gold prices may break. However, according to Kedia, gold prices may once again move towards record highs in the first half of 2021 and may remain at 56,000-58,000 in 4-6 months. However, in the second half of 2021, its brightness may blur. Gold prices can remain at an average level of 50 thousand next year.
Attraction to investment in Gold ETF increased
The attraction of investors in gold is increasing rapidly. It can be understood by investing in Gold ETFs. However, investors have sold in the last month. According to data on AMFI (Association of Mutual Funds of India), investment in gold ETFs continued continuously since March. There was an outflow of 194.95 crore in March followed by 730.93 crore in April, 815.03 crore in May, 494.23 crore in June, 921.19 crore in July, 907.85 crore in August, 597.26 crore in September and 384.21 crore in Gold ETF in October. Stayed. Some investors booked profit in November and had an outflow of Rs 141.09 crore. However, the trend of investors still remains on the Gold ETF.