Gold has traditionally been an investor’s choice in India. Even in the first four months of the year, gold has not disappointed investors. Since January, gold has given a profit of seven percent to investors, while in the Sensex, investors have lost about two percent during this period. Market experts say that in view of the pick-up in domestic demand and the current global economic situation, gold may rise further.
Gold prices may increase further due to these reasons
1. Impact on global markets due to prolonged drag of Russia and Ukraine dispute
2. IMF downgrades global economic growth forecast
3. Potential Impact of the Presidential Election in France on Europe
4. Increase in demand in the domestic market
5. Panic again in global markets due to rapid spread of corona in China
Mutual fund companies are preferring to invest in gold
Experts say that gold is showing signs of bullishness in both the short term and the long term. He says that the dollar index has reached 101, which is higher than the estimate. If there is any big fall in this, then there can be a strong rise in gold. Apart from this, there are other factors which are giving new heights to gold. Interest rates are rising in the US. Whereas inflation is at a five-decade high there. Despite this, mutual fund companies are also preferring to invest in gold.
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Due to this the price of gold is also increasing. Experts say that gold is the first choice of investors as a safe investment and the current global political and economic turmoil is indicating uncertainty in the economy. Due to this, investment in gold is increasing, which is affecting its prices. Experts say that amid the global economic uncertainty, due to the increasing crisis of Corona in China again and the protracted drag of the Russia-Ukraine war, investors are more inclined towards gold.
Investing in gold will continue to be beneficial
Anuj Gupta, Vice President (Commodities & Currency), IIFFL told Hindustan that investors’ confidence in gold as a safe investment has once again increased after the IMF downgraded the global economic growth forecast. Apart from this, gold prices are also increasing due to Russia-Ukraine dispute and increase in demand during the wedding season in India. Gupta says that given the current situation, gold can touch the level of Rs 55 thousand per 10 grams till Diwali. He says that there is no apprehension of a big fall in this at the moment.