Gold Prices 2021: Here's why investing in yellow metal next year can be beneficial for you
New Delhi | Jagran Business Desk: Investing in gold is always considered a good option as it minimises risks. The ongoing coronavirus pandemic had also turned the spotlight on gold as its price surged to an all-time high in 2020.
If experts are to believed, then investment in gold is going to get safer as the price of yellow metal is expected to surge to Rs 63,000 per 10 grams in the New Year amid expectations of fresh stimulus measures and weaker US dollar.
Speaking to news agency PTI, Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan said that the stimulus provided by the government due to the coronavirus pandemic "triggered a sharp rise in investment buying in the domestic market" due to which gold price reached an all-time high in 2020.
He told PTI that outlook for gold remains strong due to fresh stimulus expectations which can attract investors once again in the upcoming year.
"The dollar could weaken on the back of more stimulus and that could help gold prices rise once again. Also, inflationary expectations due to the massive stimulus can be seen as a positive factor that could attract investment buying once again in 2021," he said.
Thiagarajan noted that physical demand for gold from India and China will take centre stage in 2021 and if rupee remains stable, then gold prices are expected to test around Rs 60,000.
HDFC securities Senior Analyst (Commodities) Tapan Patel also asserted that gold prices will rise in 2021 in India as it got additional support from rupee depreciation against the dollar during the year as spot rupee was down by around three per cent year-to-date.
"The slower pace of revival of economic activities and labour market growth along with higher amounts of stimulus measures will continue to remain driving factors for gold prices," Patel was quoted by PTI as saying.
In 2020, gold prices had initially plunged amid economic uncertainties due to coronavirus pandemic. However, it reached an all-time high of Rs 56,191 per 10 grams at MCX and USD 2,075 an ounce in the international market in August.
Posted By: Aalok Sensharma