InvestorQ : With gold prices still going strong in the Indian market, do you see gold crossing Rs.50,000/10 grams in the Mumbai market?
Crowny Pinto made post

With gold prices still going strong in the Indian market, do you see gold crossing Rs.50,000/10 grams in the Mumbai market?

Answer
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5 months ago


Gold has been a tremendous performer in the last 15 months. For example, gold gave returns of 23% in the full calendar year 2019 and has given an additional 16% returns between Jan and April 2020. That has been largely driven by the trade wars, the geopolitical uncertainty and the global economic slowdown. With the COVID-19 pandemic spreading its wings, it is now time for gold to make the final big rally. While gold prices globally are close to the previous peak of $1820/oz, the domestic prices of gold are already at a historic peak. Now with the global gold prices getting closer to $1800/oz, it is only a matter of the next few months before gold in India touches Rs.50,000 crore. Of course, the only risk to this argument is that if there is a huge economic revival and equities start to do well then gold could fall sharply but that looks quite unlikely at this point of time.