This year the gold price is 18.38% up. Analysts are predicting further growth. At the moment of writing, it is trading $1,810.40 per ounce.
This month, the gold prices managed to break record high and trade over $1,800 per ounce for the first time since 2011. However, in the last four days, the gold price has declined three times, going down from $1,811 to $1,807.68. Therefore, a question arises: is the precious metal a good buy now?
When the COVID-19 pandemic broke out, global markets collapsed. People were looking for nothing but safety, trying to invest in trustworthy tech stocks and precious metals. And here came gold’s glory. At the beginning of 2020, gold was trading at about $1,600 price. It was rising and last Wednesday rallied 0.9% to $1,811.01 per ounce. U.S. gold futures settled 0.6% higher at $1,820.60 that day.
Gold Prices in Rally: What do Experts Think?
While the opportunities for investors are significantly expanding thanks to crypto, traditional markers still attract a lot of attention. And gold can be still a good choice (or probably not today?).
Cameron Alexander, director of metals demand at market data company Refinitiv, commented:
“Gold is being pulled in two directions: One is the uncertainty. But equities are still doing really well,” fueled by central bank stimulus.”
HSBC analysts said:
“We believe the bull market is being further energized by the ongoing fallout from the pandemic and is likely to stay firm. The perceived need for a ‘safe haven’ even in the event of further relaxation of the lockdowns and equity gains is likely to keep gold well supported for the balance of the year.”
As for the further prognosis, most analysts agree that there is still room for gold prices to rise. For example, Albert Cheng, CEO of the Singapore Bullion Market Association, believes gold will reach $2,000 per ounce by the end of the year. Besides, he recommends all investors to have some gold assets in their portfolio.
Citigroup analysts stated:
“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year. It is only a matter of time for fresh” highs in U.S. dollars.”
This year, gold is 18.38% up. At the moment of writing, it is trading $1,810.40 per ounce.
What’s Up in India?
In India, which is the largest gold importer, the demand for the metal has fallen because of the pandemic. As a result, gold imports have dropped by 94% during the first quarter of 2020. Amid the fall, dealers there lowered their premium level. Last week, they charged premiums of up to $2 an ounce over official domestic prices compared to the previous week’s $3 premium.
Currently, the Indian government seeks to bolster consumer confidence and spending power to revive the economy. Hopefully, the demand for gold there will soon rebound. As of now, gold price in India is 0.02% down, 48,964 RS per 10 gram.
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