Gold has become 16% cheaper than the all-time high, is this the right time to invest? Returned 30% last year

Invest in Gold: Commodity market experts say that gold will start shining again as soon as the American Stimulus package arrives. In such a situation, this is a great investment opportunity because gold has become cheaper by 10 thousand rupees than August high.

Once again, gold will be 56 thousand.

Gold had given a spectacular 30 per cent return in 2020. In August 2020, the price of gold reached Rs 56200 per ten gram (the highest level ever), which is now at the level of 46800. The price of gold has improved by more than 16 percent since its all-time high. In such a situation, is this the right time to invest, this question becomes very important for investors. Here the stock market is in correction mode after reaching the level of 52500. It is currently trading in the 49900 range. According to experts, due to the rise in bond yields, inflation is expected to increase and there will be some more correction in the stock market.

In the last six months, the price of gold has fallen by 10 thousand rupees. Regarding this decline, Surendra Mehta of IBJA, India Bullion and Jewelers Association, says that there are many reasons for the price improvement. The US dollar is strengthening against other currencies of the world. When the dollar is strong, the price of gold declines. Apart from this, the interest rate has increased in the US bond market, due to which the pressure on gold price is increasing. Investors’ interest in cryptocurrency has also increased over the recent time. In such a situation, investors are taking risk and also investing in digital currency. He says that due to all these reasons there is a decline in the price of gold, but it will accelerate in the coming days and for those who want a safe investment, there is a golden chance to invest in gold. It is believed that after the announcement of the Stimulus package by the US, the price of gold will rise. In the next 3-4 months, gold can give good returns.

Gold flashes sharply in US benchmark bond yield

In a report published in Mint, Chirag Mehta, Senior Fund Manager of Alternative Investments, said that the decline in the price of gold is visible due to the rise in the US bond yield. The 10-year US benchmark bond yield was 0.60 per cent in August 2020, which has now risen to 1.37 per cent. Chirag says that the US Federal would not want the yield to accelerate. Reduction in bond yields is essential for recovery in the economy. In such a situation, the Federal Reserve will take such measures which will cause the yield to fall, which will then bring back the glow of gold. Yield refers to interest rate.

Gold can reach 56500 levels within 6-12 months

Navneet Damani, Commodity Research, Motilal Oswal Financial Services Ltd, says that gold is currently at a strong position of $ 1800 in the international market. It is expected to reach $ 2150 in the medium term. He said that due to a 5 percent reduction in import duty, the price of gold is also seen to decline, but in the next 6-12 months it can go up to 56500 or even above. Commodity market experts still say that there will be a rise in the price again, so this is a golden opportunity for investment.

Delivery Gold and Silver Price

On MCX at 10.15 am, gold for April delivery was trading up by Rs 8 to Rs 46810 per ten grams and gold for June delivery was trading at yesterday’s level of 46940. In the international market, gold is trading at $ 1,808.30 per ounce with a gain of $ 2.40 (+ 0.13%). At this time, silver for March delivery was trading at Rs 69522 per kg with a rise of Rs 181 on MCX. Similarly, silver for May delivery declined by Rs 169 to Rs 70790 per kg and silver for July delivery was trading up by Rs 182 at 72083 level. In the international market, silver was currently trading at $ 27.76 per oz, with a gain of $ 0.074 (+ 0.27%). There is 28.34 grams in 1 oz.

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