Know why Gold Prices are rising in COVID pandemic

New Delhi, 28 July 2020: Gold is setting new records every day. Gold set a new record of Rs 52,960 per ten grams in the international market late on Monday evening. This is a record in the last nine years. However, despite the low demand for physical gold in India, gold prices are rising. In such a situation, analysts have expressed the possibility that by December, gold could go up to Rs 65,000 per ten grams.

Despite being expensive, people will buy gold: According to analysts, there are two reasons for the low demand for gold in India. For one, the Coronavirus disease (COVID19) cases are setting a record every day. Second gold prices have risen so much that now everyone is avoiding buying. But analysts say that even though gold is expensive, it will definitely be bought when the festive season begins. Tapan Patel of HDFC Securities said gold is still gaining momentum globally.

Festive season will start from August: In India, the festive season starts from August. But due to high gold prices, its purchase may go a little further this time. Analysts expect gold demand to pick up from Diwali and prices to rise. People in rural areas get the money during the July to September quarter. So buying gold in this quarter is good. In the fourth quarter of the year, gold is in high demand due to marriages.

Demand for gold may decline this year: It is believed that demand for gold may decline this year. Corona and gold prices are the reason for this. According to analysts, gold can still fetch Rs 65,000 per ten grams. Still, the government and RBI can give relief because of Corona. Some steps can be taken to accelerate the economy. According to Kishore Narne of Motilal Oswal Financial Services, gold could go up to Rs 65,000 by the end of 2021.