On Friday (July 10, 2020), gold prices in early trade lost a tad bit by 0.01% or Rs. 6 to trade at Rs. 48872 per 10gm. Gold prices in the previous day after hitting close to record high slipped. In the Mumbai bullion market however it hit a new high of Rs. 49239 per 10 gm on rupee depreciation to again levels of 75 per US dollar.
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The increasing rising sentiment is also the continuing surge in gold prices which gains as a 'safe have' asset amid political and economic risk. Back in the country the cases have topped 7.7 lakh levels while deaths due to corona are now over 21000. Meanwhile, the UP government in India has again announced a lockdown starting 10 pm today to 5 am of July 13, 2020.
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Rs. 55,000 Prices Eyed For Gold Price By the End of 2020
In March amid the rout and as market participants even sold off their positions in gold to square off their losses in equity, gold reached a low of Rs. 38,500 per 10 gm and now have scaled to Rs. 49000 per 10 gm levels.
And analyst given the grim forecast by IMF on the economy and coronavirus woes, analysts estimate gold prices to peak to levels of Rs. 55,000 per 10 gm levels.
What Should You Do Amid Rising Gold Prices?
To diversify one's portfolio and also to hedge risk in other instruments and inflation, gold should certainly be part of your portfolio. But now given the fortunes that the yellow metal can provide given the positive momentum, investors can consider investment into gold (up to 10% or even higher allocation) as and when there is some considerable correction. As there is no sense in taking a bet on gold at such high prices.