Global stimulus measures, low-interest rate regime, economic uncertainty amid Covid 19 all fuelled gold's run up to record high and in early August Gold surpassed all previous highs to scale to $2067 troy ounce.
In the Indian markets, in the futures markets, gold touched a peak of Rs. 56200 per 10 gm and currently is hovering at around Rs. 49000 levels on recovery hopes from the pandemic given optimism around Covid 19 vaccine which though will hit the ground in some time though.
Fy 2020-21 for gold based on return
In the fiscal year, gold has seen a steep run of up to 29.6 percent and the upside is expected to continue through the next year. Though, analysts see the year 2021 to be a mixed year for gold with upside in the first half and correction in the second half.
India experienced faster increase in gold prices than in global shores
This was primarily on the back of irregularity in rupee movement. Any rupee appreciation weighs on gold prices and it sees downward pullback and viceversa. In India gold prices have risen by 45 percent in 2020-21.
Demand seeing a huge slump and consequently imports being hit
In the June quarter, there was perhaps no demand and imports almost sank by over 90% during this time.
Sales revenue from jewellery and gem
This also sees a steep plunge of between 60-97 percent as reported by different players in the segment in the June ended quarter of Fy21. And it is also being stated that jewellery business in its usual form has disrupted and most players are now resorting to digital channels of doing business to revive demand with enticing offers.