look news india
Investment Tips For Gold: Gold has seen an attractive uptrend in the current calendar year. The precious metal has seen huge fluctuations amid geopolitical crisis and possibility of interest rate cuts. Gold prices in the country have risen by 21.24 per cent in the last one year. Whereas a return of 38 per cent has been generated from the October-23 level.
Gujaratis get 21% return in one year
If we look at the local prices in Ahmedabad, Gujaratis have got a return of 21 to 23 percent in gold in the last one year. Last September 6, 2023, Rs. Today gold was bought at Rs 61200 per 10 grams (999) Rs. 74200 per 10 grams. Similarly, the price of silver also increased by Rs 11500 in the same period. 84500 per kg.
Reasons for the rise in gold
The demand for gold has been increasing continuously for the last one year. Due to which the price has also increased. Factors such as geopolitical crisis, increased purchase of gold by central banks of many countries and economic uncertainties have increased the demand for gold. Investors buy more gold due to the above factors, so that they can reduce the loss in their portfolio by hedging during the recession and also get returns.
Is gold still an investment opportunity?
Gold prices have remained stable for the last one month. In Ahmedabad too, the price of gold remains stable at an average of Rs. 7400-74200 per 10 grams. If the interest rate is reduced by the US, it will affect the precious metal. Investors are eyeing the US jobs data. Based on that, the Fed will decide on raising interest rates in September. So now investors are waiting. However, on the other hand, there is a possibility of recession in America, even if this happens, the demand for gold will increase.
Demand is expected to remain strong in China
Gold is likely to remain bullish in the medium term. The second reason is the growing demand in China, one of the largest gold consuming countries. Higher gold prices by other countries will lead to profit booking, while China will increase its purchases.
Gold prices have increased due to reduction in import duty
In the Union Budget, the import duty on gold has been reduced from 15% to 6%, which is the lowest import duty since 2013. The reduction in import duty will reduce gold smuggling and increase official demand. On the other hand, if the Fed cuts interest rates, the dollar index may soften, which will also affect investment in gold.
What should investors do?
According to experts, short-term correction or volatility may be seen in gold. But it is advisable to invest in gold for the medium to long term. Keeping the above points in mind, it is expected that the rise in gold will continue.
