New Delhi: In the midst of the Corona crisis, investors considered Gold the safest investment option and invested money fiercely. As a result, during the lockdown, the gold price went upwards by breaking the barrier of Rs 50,000 per 10 grams. In the meantime, people also earned huge money in the share markets. When people saw profits in the stock market even in difficult times, a large number of people started withdrawing money from gold. After this, the gold prices slowly started coming down. This led to a fall in gold prices by more than Rs 5,000 per 10 grams in September 2020.
Stock market plunged after Trump reported corona contagion
Now after the Corona virus report of US President Donald Trump and his wife Melania Trump came positive, the stock markets around the world started to decline. The Dow Jones Future, the leading benchmark index for the US stock market, fell by over 500 points. Also, the yields of 10-year Treasury bonds have fallen. At the same time, on Monday, Japan’s leading benchmark index Nikkei broke over 1 percent in Asian markets. China’s major benchmark indices Shanghai and Australia’s ASX 200 index broke more than 2 percent.
This is why gold prices can rise very fast in India
The stock markets in India remained closed on October 2 due to Gandhi Jayanti. Trading in Indian stock markets will now start on Monday, September 5, after the Saturday and Sunday holidays. Considering the state of the stock markets around the world, including Asia, it is believed that Indian capital markets may also fall and open on Monday. In such a situation, there seems to be more hope for people to go for investment in gold instead of stock market. Amid such expectations, there is a possibility of changing the equation regarding the price of gold in the next 48 hours. It is believed that gold prices can climb very fast.
Gold prices are more than Rs 5000 below the record high
On the first day of September, the price of gold was Rs 52,638 per 10 grams, while on the last day the price of the precious yellow metal was Rs 51,372. Gold on October 1 stood at Rs 51,389 per 10 grams. In August 2020, gold was hitting a record high of Rs 56,000 per 10 grams. At the same time, the price of gold has decreased by more than Rs 5,000 in October. Experts say that due to the high prices of gold and the good atmosphere in the stock markets, people took money out of gold and put it in shares. Gold prices started falling due to this. According to the ANZ report, the main reason behind the fall in gold prices was the strengthening of the dollar. However, once the stock market has started declining after Trump gets infected, people can turn to gold as a safe investment option. In such a situation, the price of gold is going to bounce.
