4 Reasons Why Gold Maybe A Good Bet Now

Posted By:
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
For Daily Alerts

    Gold prices in India have not moved a great deal since the start of the season. In fact, gold prices are near the Rs 27,800 to Rs 28,300 (depending which city you are in) for the last few months. However, here are few reasons why investors can bet on gold at the moment.

    Geo-political uncertainty

    As we all know, there is almost a threat of war, everyday by North Korea. Geo-political tensions on the Korea peninsula will keep gold prices elevated in the coming weeks. There are big reports of bombing that happened recently on Syria and all such events will ensure that gold prices do not fall anytime soon. This is why it is a safe haven asset and that is unlikely to change.

    Rupee may weaken

    There are worries that the rupee has gained far too much in the recent past. In fact, it has moved from levels of Rs 68 to Rs 64.55 and there is a high possibility that it may weaken. When that happens gold prices would gain and become even more costler than what it is today. This is because we import our gold requirements and pay in dollars. When rupee falls, gold prices in India gain.

    Check and convert currency rates here

    French elections

    In France, a far left candidate, who does not favour France in the Eurozone is surging in elections. Till the elections are complete the outcome is uncertain. So, for the next few weeks at least gold would be a good bet.

    Uncertainty over policies

    Uncertainty over policies in the US, may also have a telling impact on gold. Volatile policies will lead to volatility in gold prices, which could rally on the back of such uncertainty. We have already seen the impact of that particularly in the US, when the recent Healthcare Bill was pulled back.

    Check gold rate in all Indian cities here



    Read more about: gold
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more