Gold prices have surged by more than Rs 10,000 in the past four months to go pass the mark of Rs 50,000 per 10 grams in the lockdown period despite the retail demand remains lowest as wedding season begins and bullion experts say prices will soar more in coming times.
The price of gold was Rs 40,960 on March 24, 2020 just before the start of the first lockdown.
Bullion traders say that the rate is going to further increase in the coming times as there is a dip in the production of yellow metal worldwide due to COVID 19 pandemic and investors heightened interest in the precious metal as markets worldwide tanked.
The gold prices touched all-time high of Rs 55,500 per 10 gram on March 24, 2020. However, there was some correction in prices after the lockdown was relaxed.
The wedding season is limited this year and will be around December. So, the hope for the rise of demand is less and the industry has been suffering owing to that".
One of the leading retailers of Gold in Guwahati, Tansukrai Ratanlal Jewellers said that the bullion industry is hopeful the demand for gold retailers will be back to normal in the coming months.
"Following the loss of pandemic months, we are trying to be optimistic in the upcoming festive and wedding season," Sahib Jain of Tansukrai Ratanlal Jewellers said.
“The trend continues to be positive for gold. The geopolitical tensions and IMF keep the prices in an uptrend,” a bullion trader said.
Whenever the economy is in turmoil or the stock markets are falling, investors flock to gold to preserve the value of their money. As such, the prices have been rising at a time even though there is massive downfall of the Gross Value Added (GVA) of the core sectors.
Investing in gold is considered a way of diversifying the portfolio, he added.