AHMEDABAD: Increased safe-haven investments in gold have caused the yellow metal price to skyrocket in the international market and gold price back home followed suit, inching towards the Rs 51,000-mark per 10 gram. Yellow metal price opened at Rs 50,920 per 10 gram in Ahmedabad market on Wednesday.
Analysts claim that gold price will remain on an upward trend in the wake of increased buying of gold by central bank and safe-have investments by big investors globally. “Concerns over the adverse impact of ongoing Covid-19 pandemic are rife and as a result, central banks of various countries are investing heavily in gold, causing prices to go up in the international market. On Wednesday, the Indian currency too depreciated against the US dollar, with the latter settling at 75.13 after touching a peak of 75.5 during the day,” said Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA).
“Globally, there has not been a significant change in the economic situation after the Covid-19 pandemic. Stock markets across the world are giving negative returns. There is no ease to the drying up of liquidity in the market and as a result, safe-haven investments in gold have gone up significantly, keeping the prices upwards. In the days to come, there is enough scope for the prices to remain on the growth trajectory,” said Sudheesh Nambiath, head, India Gold Policy Centre (IGPC) – IIM Ahmedabad.