News By/Courtesy: AKSHITA PHUTELA | 26 Jul 2020 15:50pm IST

HIGHLIGHTS

  • Gold prices are expected to rise even after 30% gains this year
  • Investment in gold and bonds are expected to increase
  • Jewellery industry shows concerns as people aren't able to buy gold at so much high prices

Gold prices may even head higher despite 30% gains this year.

"The extent of economic damage caused by the pandemic has been severe. The global economy will face a protracted economic deceleration, even after the pandemic cools down. This will warrant accommodative policies like bond-buying programs and low-interest rates to reignite economic activities over the next few years. As Central banks print the unprecedented amount of new money, gold prices should appreciate further", says Chirag Mehta.


He also added, "with too much liquid ATI floating around there is the probability of higher inflation over the next few years lowering the purchasing power of the currency people hold, I am thinking gold a preferred monetary asset."


Gold prices in India are record-breaking on MCX August gold futures settled 0.6 % higher on Friday at Rupees 50110 per gram after hitting a new high of Rupees 51184 earlier in the season.


"Spot gold prices for 24 carats in Delhi continued to hit high rising by rupees 475 with recovery in international gold prices and rupee depreciation", HDFC securities Senior analyst Tapan Patel said.


At the times of political and financial uncertainty, gold comes to the rescue.


Muthoot Fincorp and Muthoot Fin seeing surging assets under management.


Higher gold prices have helped borrowers get the maximum value of their gold, said John Muthoot Chairman Muthoot Fincorp.


George Alexander Muthoot managing director said we expect to achieve a 15% loan growth target set for this fiscal before COVID-19. We are asking customers to map bank account with us which mitigates business threats that may arise out of extended lockdown.


Umesh Mohan and Chief executive Intel money said "Cash flows in local markets reduced due to pandemic triggering higher demand for gold loans the Kerala based company has launched India's first long-term gold loans in the two-year tenure."


"The demand is already High, very sluggish at the moment with only 20 to 25% business taking place following the economic slowdown insecurity over jobs social distancing and logged out due to COVID-19. The higher price of gold will add to the already sluggish consumer demand", all India gem and jewelry domestic Council chairman Ananth Padmanabhan told PTI.


The jewelry industry is concerned about the consumer demand for gold to go flat further amid soaring prices of precious metal and economic slowdown.

This article does not intend to hurt the sentiments of any individual, community, sect, or religion etcetera. This article is based purely on the author's personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

Section Editor: Pushpit Singh | 26 Jul 2020 17:14pm IST


Tags : #gold #market #stock #business

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