InvestorQ : Will the gold prices increase in India by July-2021?
Tanya Mehta made post

Will the gold prices increase in India by July-2021?

Priyanka Singh answered.
2 years ago
The prices of gold in India are driven by international gold prices and movement in INR v/s USD. Due to pandemic, 2020 has not been a great year. However, for gold, we might avoid saying that. Gold prices went at 66,563.65 USD/Kg in August 2020 from their lowest levels. This happened because of ease in lockdown regulations and the market returning to life. After this, in Nov 2020, gold prices again stooped to their lowest levels of 57,144 USD/kg and, since then it is marginally settling around these levels only.

If you look at the current scenario in the Indian economy, interest rates are reducing, oil prices are growing lower, domestic manufacturing is looking forward to new exposures and hence a better and sustainable environment for the Indian economy. The wedding season will start in April and will bring closure in July. Until April, the economy will be halfback on its feet, hence stability in prices.

As per our analysis, all these factors will contribute to the increased prices in the first quarter of 2021. The prices of gold will decrease in the last quarter of 2020. We can expect that the investment in gold could remain attractive for Q1 2021.