Gold Prices To Scale To Rs. 50,000/10 Gm Sooner Than Expected

At a time when gold as a safe haven has gained traction owing to a geo-political and financial crisis, the appeal of the safe haven is likely to remain up for sometime even as the economies are opening up and risk-on sentiment improves.

And if experts are to go by, the precious yellow metal can scale to Rs. 50,000 per 10 gm on the MCX. On Monday, June 1, 2020 itself, the metal hit a high of Rs. 47,300 and later retreated lower to settle at Rs. 47,083 per 10 gm.

Gold Prices To Scale To Rs. 50,000/10 Gm Sooner Than Expected

So, what will make gold to gain in prices in near term?

1. Easy monetary policy:

The stimulus measures announced world over to combat the economic fall out due to Covid 19 works in favour of gold due to debasement of currency.

2. US-China tensions over Hong Kong also weigh:

The security law announced by China is also putting gold in the forefront and investors remain wary of riskier assets.

3. Now the recent riots in the US:

The world's biggest economy amid the pandemic is witnessing riots and to curb it as per Washingtonpost President Trump has threatened to deploy federal troops.

So, all in all the metal which has yielded 20% return from March lows in 2 months time is going to further gain ground and hence investors can deploy their surplus at dips in the metal.

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