Global gold prices collapsed suddenly as the private jobs data was positive. This means that the economic recovery in the U.S is happening. This is considered to be negative news for the yellow metal. What will prop the price of gold? Will it be a rebound in the prices of silver?
Global gold prices are expected to end May 2021 on a very robust note. This has been the best month so far in CY2021. Now there is a feeling that there is more upside in prices. Will this really be seen or once again gold will flatter to deceive the investors?
Global gold prices have started rallying once again as risk-averse investors make a beeline. But gold has flattered to deceive even the most ardent followers. What is so radically different this time that warrants this attention? Is risk aversion finally catching up investors now? Will the rally sustain?
India will hopefully be able to implement hallmarking from June 15, 2021 after a delayed start. This move will assure gold jewellery buyers about the purity of the ornament. The cost of implementing hallmarking will not be high but non-compliance will lead to a heavy price to be paid by the said jeweller.
The much-talked of rally in gold is yet to materialise. Profit booking has become the order of the day even at the slightest of hints. Now all eyes are on the revival in the American economy. If the economic rebound continues, gold may continue to languish for quite some time testing every investor’s patience.
With inflationary worries back to haunt investors, gold is finding favour with many. Will this golden run continue as the yellow metal has faltered to deceive? The rally in gold prices is taking place even as the first tranche of the Sovereign Gold Bond Scheme gets underway for this fiscal year in India.
As loan demand evaporated, banks & NBFCs in India stepped up lending against gold. The rising price of gold provided adequate support. However now the trend has turned and these entities are facing rising gold loan defaults. Now smaller gold finance firms are stepping up their pace of action!
As central banks adopted a loose monetary policy in CY2020, asset prices had risen. This however saw a decline in gold prices. The spectre of gold buying by central banks in CY2019 was also seen in CY2020, the year of the pandemic. This hints that gold is still important for central bankers.
Indians maybe eternally in love with the physical gold but its returns over the last one year have been pathetic. Does it still merit an attention when other assets like mutual fund schemes have performed better? Experts suggest starting investments in mutual fund schemes instead.
Investors continue to fret and fume at the economic revival in the U.S. One eagerly awaited data was the non-farm payroll which turned out to be a howler. This has meant that the U.S will need to have a benign interest rate regime. It can’t afford to hike interest rates and stump out economic revival. But as uncertainty gnaws into the vitals, American and other global investors are eyeing gold once again. The smart rally in gold is being seen by many as having some more legs to it. The attraction to gold was only expected as most other asset classes have run up significantly in terms of returns. Only gold has been left in the race and it appears this valuable asset is playing a catch up game. How long will this rally last? Will it falter and deceive like last time? Only time has an answer.