New Delhi- Even though the demand for gold has reduced by a great measure, the gold rates have, however, hit a record high rate. The gold rate has reached ₹48,000 per 10 grams. On Monday morning, the gold rates jumped to ₹881. 9 April onwards, the gold rates have increased to ₹2,728. This year, gold rates have increased by 16%. The analysts further anticipate that by next year, the price of 10 grams of gold will rise to ₹ 52,000. Besides, they also claim that there are various factors responsible for this increase.
On Monday, the prices of 10 grams gold hiked up to ₹47,929. On Friday, the cost of gold in the wholesale market was ₹47,067. Furthermore, about a month ago, on 9 April, these prices were ₹45,201. Then, on 13 April, the price hiked up to a record high of ₹46,523. Later, on 16 April, the gold price surpassed the record by being at ₹46,928 per 10 grams worth of gold. But, even after reaching a record-breaking hike, the gold prices were fluctuating in the same price range for over a month. However, on Friday, 15 April, the gold prices created a new record, while on Monday it hiked up onto a new price as soon as the markets opened.
On 24 March, a nationwide lockdown was announced due to the Coronavirus. Thus, the demand for gold in the country has dropped to zero. However, despite the decrease in demand for gold, the prices are still at a hike. The analysts speculate several factors to be responsible behind this. Even though the demand for gold has decreased, the share investors have diverted their interest in gold investment and the gold band as the share market is dropping due to the Coronavirus.
The gold rates have increased even in the international market. Several nations have revealed their heavy investments in gold. The US-China trade war is not yet over. Against the background of Coronavirus, it is anticipated that the tension between the US and China will extend further. Moreover, the US economy will not regain stability until the cure for the virus is found. Besides, the analysts also claim the possibility of a global recession. Hence, investment in gold is trusted even more.
Furthermore, the gold excavation has dropped to an all-time low due, because of the worldwide lockdown. The World Gold Council’s excavation has reached as low as it used to be in 2015. This is also a factor to affect the gold price.
As of now, the central government and RBI have undertaken various programmes to initiate the currency value. Gold is always related to the rise in market value. Moreover, India is the prime importer of gold. However, currently, the Indian currency value has dropped compared to that of the dollar. On Monday, the INR currency exchanged rate escalated by 33 paise, and the current value of one dollar is equivalent to ₹75.91. The effect of the drop in the currency exchange rate can also be witnessed in the value of gold, say the analysts.