Even as the concerns around the US-Iran unrest have cooled off a bit and gold has declined after 2-sstraight days of rally in the Indian market, likely rally in gold shall still be seen all through the calendar year 2020 and it is expected to scale to Rs. 45000 per 10 gm for reasons other than the US-Iran geopolitical tensions.
So, here is a look at factors that can push gold to Rs. 45000 per 10 gm in 2020:
The levels of 41,000 per 10 gm which were supposed to be reached by June have already been reached yesterday due to the killing of the general major of Iran in the US airstrike. But as was the case in 2019, some of the factors including world over slowdown, dovish central banks' stance and their taking dig into the commodity by enormous amount will only support gold price to make new highs.
Loose monetary policy with low interest rates will also augur well for the yellow metal. At the same time, though the US-China have agreed to sign the Phase one trade deal on January 15, it is unlikely that a complete resolution on the conflict shall be reached any time soon.
So, investors depending on their risk profile, need to gear up and increase their allocation in the bullion.
Also, there have been reports that suggest that the domestic currency's reign as the best Asian currency shall not continue this year and it is likely to face headwinds. So in its wake, gold will again get a support in price.