5 Reasons Why Gold Rallied To New High Of Over Rs. 50000 For The First Time

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1. Worsening US-China tension:

1. Worsening US-China tension:

The US has asked China to shut down its Houston based consulate in 3 days time as the country needs to safeguard its IP and the information resulted in a bout of risk aversion.

2. Broadening balance sheet of different economies amid the pandemic:

2. Broadening balance sheet of different economies amid the pandemic:

To offset the coronavirus economic fall out, economies around the world have been pumping in money and after the recent stimulus worth 750 billion euro announcement by the European Union, the US is also discussing a next round of relief as extended unemployment insurance.

Also, Japan given the slump in its industrial activity for 15 straight months in July may again push the economy to dole out another stimulus package.

4. Global equity markets mixed sentiment:

4. Global equity markets mixed sentiment:

Gains in the yellow metal to record high also were propelled by mixed and in fact marginal declining sentiment in the world equity markets. And equity and gold to an extent share inverse relationship i.e. when equities falter, gold gains.

5. Rising Corona cases globally:

5. Rising Corona cases globally:

In India, the active corona case load nears 1.2 million while on a worldwide basis there 15,097,649 confirmed cases and 619,558 deaths from the coronavirus COVID-19 outbreak. The spike points to the fact that economic recovery is far from assured in the near term and is leading to investors fleeing to safe haven assets including gold and silver.

What Should Investors Do?

Buyers wanting to tap on the probable capital appreciation in the metal should use every dip in price in gold to invest in the yellow metal targeting a price of Rs. 65000 per 10 gm in the short to medium term.

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Devesh Tyagi

Technology Devesh is my dream blog, I share Tech News, Entertainment, Computer Tricks, Earn Money Online, Jobs related articles, Product Reviews, SEO, and Online Earning. I started this blog on 8 June 2019 to share my knowledge of Technology and Internet Marketing.

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