The efficacy of the vaccine, implementation of the vaccination process, low-interest rate regime and the global central bank’s stance on liquidity will guide gold prices in 2021.
Gold prices in India are closely tracked by those who either want to invest in the yellow metal or buy jewellery. The gold price per 10 gram is a popular indicator to determine how much return has been there over a period. Currently, the gold price in India is nearly Rs 49,000, and the price may vary across cities. The gold price touched a high of Rs 58,000 and has generated about 22 per cent return over 1 year.
It remains to be seen how much return will gold give in 2021 as several factors determine the demand and supply. “Bullions are international commodities and will be driven by international factors a lot. With the news of gold disclosure scheme and KYC in place for gold investors, it can become a little cautious. Broad Range for the gold is around Rs 46000 to Rs 58000. With Covid Vaccine around the corner, there can be some selling expected in gold and it is preferred to buy gold on dips,” says Nitin Shahi, Executive Director of Findoc Financial Services Group.