Gold generates outsized gains primarily due to events that cause a global risk aversion to equity
Watch the video to know more about the outlook of the precious metal
The stockpile of gold in India could be successfully monetised to benefit lenders, borrowers and the economy at large, but a calibrated approach to increasing exposure is required.
It is worthwhile having gold as part of your portfolio but remember this is a long-term investment
Gold prices were little changed on Monday but held near a one-month high scaled last week as mounting worries about the global economic outlook due to the novel coronavirus outbreak.
For the week, prices have risen 2.5 percent so far and were set to post their biggest weekly percentage gain since January 3.
Local gold futures hit an all-time high of 41,096 rupees ($570.05) per 10 grams, taking their gains to more than 5% in 2020 after rallying nearly 25% in 2019.
Here is a roundup of all the key happenings in the commodities market.
As of 9:44 am IST, spot gold was up 0.3 percent at $1,490.09 per ounce
US-China trade concerns have been lingering over global markets since last year however gold failed to benefit as we saw a rush towards the US dollar.
Compared to gold, all equity fund categories have delivered negative average returns in the last one year
Central banks have bought net 224.4 tonnes of Gold in April-June quarter of 2019, and a total of 374 tonnes is H12019, the highest purchase in the first half of any year in 19 years according to World Gold Council data.
The International Monetary Fund (IMF) on July 23 lowered its global growth forecast for this year and the next, warning that more US-China tariffs, auto tariffs or a disorderly Brexit could further dampen growth, weaken investment and disrupt supply chains.
With the trade war between the US and China encouraged investors to seek refuge in the safe haven.
Trade negotiations over tariffs between the US and China are underway and any movement therein will impact the currencies which in turn will have an effect on gold
For the first time in several weeks, gold is starting to show signs of vulnerability as a key short-term trend line is being hit.
Overcoming a mixed sentiment from global markets, gold prices climbed on account of favourable domestic cues like wedding season demand from local jewellers as well as retailers.
Gold is getting a boost from mounting speculation that the Fed may pause in raising borrowing costs, boosting the appeal of the non-interest-bearing metal
For a third year in a row including 2018, MCX gold has yielded positive returns. For 2019, too, gold looks to be an attractive asset class.
Crude oil could trade in range in between Rs 3,580–3,870 either side break out would give further direction to the trend. Overall we are positive & suggest buying at lower level
MOFSL expects Comex gold prices to be trading with a positive bias on breach of key technical levels, and expects a rally towards $1,265 and $1,290, while support are placed at $1,225 and $1,215
With tensions between China and US dissipating to some extent, industrial demand will grow in China, which will also support silver
Here's a roundup of key updates in the commodities market.
People are moving some capital into gold at this time, given the uncertainties around the pace of rate hikes by the US Federal Reserve and the US-China trade war