Gold likely to cost Rs 82,000 per 10 gram by 2021: Experts
Pune, April 24, 2020: The bullion market is closed due to the ongoing nationwide lockdown to prevent Coronavirus outbreak. This is the main reason why the market for precious metals is closed. Meanwhile, a tremendous jump in gold and silver prices is being seen in the futures market.
The bullion market is witnessing a huge jump in the gold rate. The prices of gold are continuously rising and it has once again set a new all-time high record of 10 per gram for Rs 46,200 gold on Thursday. At the same time, the experts believe that soon it can reach Rs 82,000 per 10 grams.
Gold likely to rise to Rs 82,000 per 10g by 2021
Analysts at Bank of America BofA Securities believe that gold prices in the international market may rally to $ 3,000 per Ounce (oz) by the end of 2021. Translated into Indian rates, which at current exchange rates can be around Rs 82,000 / 10 grams. On Thursday, June gold futures on MCX closed at 46,352 / 10 grams. Therefore, in about a year and a half, gold prices in India can rise by about 75 percent. In the international market, gold is currently trading at a level of $ 1,750.
Another global financial powerhouse, analysts at Goldman Sachs, also placed their bets on the yellow metal and said, given the current global market scenario, it was a better hedge than crude oil. At the end of March, analysts at Goldman Sachs predicted that crude oil prices could enter negative territory. GDP, central bank balance sheet or official gold reserves will remain the key determinants. At the same time, it has decided to increase the 18-month gold target from $ 2,000 to $ 3,000.
Today is the last day to buy cheap gold
The government has started selling the first sovereign gold bond for the financial year 2020-21 from April 20. Investments can be made in this till 24 April. That is, you have a chance to invest in it. The person investing in it can buy up to 500 grams of gold bonds in a financial year. There is a minimum investment of one gram. You can save tax by investing in this scheme. Investment under the scheme will get 2.5% per annum. The first instalment of the Sovereign Gold Bond has been named the 2020-21 Series.
Reserve Bank of India (RBI) said that it will be decided based on the simple average of the closing price of 999 purity gold published by the Indian Bullion and Jewelers Association Limited. For the gold bond of the series, the price has been fixed at Rs 4639 per gram i.e. Rs 46390 per 10 gram.
On purchasing it online, it will get a discount of Rs 50 per gram or Rs 500 per 10 gram. SGB will be sold through banks (excluding small finance banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices and recognized stock exchanges (NSE and BSE).
Why the rise in the price of gold?
Due to Coronavirus, the global economy has collapsed. In such a situation, investors are looking for safe investment given the risks of investment. Yellow metal gold has always been a safe investment for investors. In such a situation, the price of gold has increased due to increasing investor sentiment.
But despite this, there are huge fluctuations in its prices. Despite the closure of the bullion market, central banks, fund managers, and investors are investing in gold, which has led to the rise in the price of gold. It is worth mentioning that last week, the price of gold in the domestic futures market reached Rs 45,720 per 10 grams. While market experts are assuming that gold will cross the Rs 46000 level this week. By June, its price is expected to be Rs 50,000 per 10 grams.
