In Monday's trade, i.e. the second trading day for the year, on the MCX, gold for February contract has again surged by over Rs. 500 due to the weakening in the dollar to two and a half year low. Now, today's gain have also to do with tightening measures being considered in Tokyo as the new strain is highly infectious more than the earlier one.
Internationally, levels of $1910 per ounce have been seen.
But some believe it to be another upside year for gold, there are also anticipations that gold shall not replicate the performance of over 25% gains in 2020. As much of the gains in the year gone by have because of the Covid situation and now as the situation seems to ease around the Covid due to Covid vaccines being rolled out in India and abroad there is expected global growth recovery will pick up faster which wipes away the sheen off the precious yellow metal.
So, as per the views of Ravindra Rao of Kotak Securities unless the Covid situation takes a worse turn, we may not see the same performance of 2020 being repeated this year.
Investors' can take on this strategy as the yellow metal to unlikely repeat 2020 performance
Any downside in the yellow metal should be taken as a buying opportunity and it should be held in the portfolio and invested into it in a staggered manner for likely positive returns. And no doubt the yellow metal has over the year's timeframe has been able to beat inflation and has since ages been considered store of value.