Srinagar, Jan 01: Gold prices gained Rs 235 to Rs 49,675 per 10 gram in the national capital on the last trading day of 2020.
In the previous trade, the precious metal had closed at Rs 49,440 per 10 gram. Silver also went up by Rs 273 to Rs 67,983 per kilogram from Rs 67,710 per kilogram in the previous trade.
The the yellow metal was enroute to register its best annual performance in 10 years. Spot gold was almost flat at $1,893.84 per ounce by 1000 GMT, but was up more than 24% for the year, its best since 2010. U.S. gold futures were up 0.3% to $1,898.70, a Reuters report said.
Unprecedented stimulus measures and low interest rates to cushion economies from the impact of the pandemic this year have benefited gold, as it is seen as a hedge against inflation. Silver fell 0.6% to $26.44 per ounce but was up more than 48% this year, its best performance since 2010. Platinum rose 0.8% to $1,074.33 per ounce and was up over 10% in 2020. Palladium was up 0.4% at $2,372.04 and on track for a fifth straight year of gains with a 22% rise, Reuters added.
Gold’s all time high and low of 2020
Gold, always considered a safe haven for investment in uncertain times, reached an all-time high of Rs 56,191 per 10 grams at MCX and USD 2,075 an ounce in the international market in August. The year began with gold seeing Rs 39,100 per 10 grams price range in the domestic market and USD 1,517 an ounce in the international market. Domestic gold prices hit a low of Rs 38,400 and saw a steady rise all the way to Rs 56,191 per 10 grams in 2020.
Gold prices outlook in 2021
Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan told news agency PTI that the yellow metal could test Rs 60,000 per 10 gram or USD 2,200 at least in 2021, provided the rupee remains stable too. HDFC securities Senior Analyst (Commodities) Tapan Patel said the yellow metal is likely to remain bullish next year with targets of USD 2,150 and USD 2,390 in COMEX gold and Rs 57,000 and Rs 63,000 at MCX on concerns over global economic recovery.
Prof Arvind Sahay, Chairperson, India Gold Policy Center at the Indian Institute of Management Ahmedabad (IIMA) told Zee Media that Gold prices in top 17 consuming countries are higher by 22% on average, varying between 13% to 60%. The gains were driven by strong investment demand.
“We think gold prices still have scope to increase by 20 to 25% in 2021-22 in a certain scenario. In this scenario, interest rates in the dollar and Euro zones continue to remain soft, trade frictions continue to simmer between the US and EU on one side and China on the other, geopolitical tensions and technological rivalry over semiconductors ratchets up a notch or two, Covid -19 cases continue to rise and the vaccine does not perform as well as expected for another 6-12 months, new stimuli get announced and bitcoin gets even more volatile,” he added.
