Gold demand in India may decrease sharply amid Corona epidemic. Demand has been adversely affected by strict restrictions and physical market closures. According to the World Gold Council (WGC), there was a demand of 140 tonnes during January-March in 2021, a 37% increase from the year before. But it is unlikely to remain positive growth.
According to the council, demand for the first quarter was due to relief in lockdown restrictions and price incident. Gold demand in the first quarter of 2020 was 102 tonnes. Meanwhile, the total demand for gold jewelery rose by 39% to 102.5 tonnes from 73.9 tonnes a year ago.
According to commodity market expert Manoj Kumar Jain, gold demand will remain weak in the second quarter due to strict restrictions due to corona. However, demand is expected to improve in the third quarter due to Diwali. On Monday, gold has risen by Rs 178 to Rs 47,929 per 10 grams in the futures market.
He told that investors should still invest in gold. It would be advisable to invest in the range of 47,000- 48,000. Because by the end of June, the price of gold on MCX can cross the range of 50 thousand. The special thing is that investors are likely to get good returns for both short-term and long-term. In fact, gold and silver benefit from rising global inflation. Apart from this, the dollar will be weakened due to the increase in the US deficit, which will benefit Gold.
Jim Rickards, an economist known as the first financial detective of the US agency CIA and author of the best-seller book The New Great Depression, also believes that India is fond of gold, which will prove useful in the recession. This is the reason that India will help the world to recover from the recession, because the economic growth here will be faster than others due to the increasing population.
Like and Follow us on :
