In the midst of Covid-19 second wave, the price of domestic gold has kept on rising. The trend has been seen right from the beginning of the year when gold was under pressure because of surging US bond yields and a strong US dollar.
In India, the price of gold fell at the end of the year 2020 during the Covid-19 epidemic introduction. However, because of favorable macroeconomic fundamentals, the price of yellow metal is again rising.
Will it be a wise decision to invest in Gold now?
As per the Multi Commodity Exchange (MCX), the Gold has touched Rs 48,000 per 10 grams. The key reason behind the trend is the rise in domestic prices. Additionally, another factor is rising lockdowns in Asia during rising in the Covid cases.
Earlier, Motilal Oswal Investment Services said that the price of gold may hit Rs 56,500 by the end of the year. Previously, the gold price peaked at Rs 56,200 in August 2020 during the Covid-19 outbreak.
The company said that “On the domestic front, the post-budget prices correction is a good level to enter once again for immediate targets towards R 50,000 and eventually hitting new highs of Rs 56,500 and above over the next 12-15 months.”
Additionally, few analysts see that the price of gold hitting nearly Rs 52,000 in June 2021. Kshitij Purohit, Lead-Commodities & Currency at Capital Via Global Research told that gold could reach up to Rs 51,700 in the coming month. Thus, it is a good time for investors to hold gold for medium to long term” he added to his words.