Bullish factors building in the gold market are set to see prices take out the record set in 2011, according to Citigroup Inc. The metal is benefiting from loose monetary policy, low real yields, record inflows into exchange-traded funds and increased asset allocation, the bank’s analysts including Ed Morse wrote in a report. Gold is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.
The latest tranche of sovereign gold bonds, which opened for subscription on Monday, closes today. In the fourth tranche of gold bonds of this fiscal, the government is selling gold at ₹4,852 per gram. Investors applying online and making payment through digital mode will get a discount of ₹50 per gram. The issuance date of this tranche of gold bonds has been fixed on July 14.
Gold imports, which have a bearing on the current account deficit (CAD), plunged significantly to USD 79.14 million during the first two months of 2020-21 due to a significant fall in demand in the wake of the COVID-19 pandemic, according data from the commerce ministry.
Commodity markets face very rocky terrain over the second half after their trial by pandemic in the opening six months. With the third quarter starting next week, What to Watch runs the slide rule over a clutch of the major raw materials — including oil, copper, iron ore and gold — to assess pitfalls and prospects. The mixed picture suggests being selective is key.
The confidence of many investors got jolted when over Rs 30,000 core of their money invested in trusted debt funds of reputed mutual fund (MF) company Franklin Templeton got stuck indefinitely after the world’s leading fund house on April 23, 2020 announced that it will close six of its debt mutual funds schemes. As such funds are less riskier than the equity funds, people often park their short-term money and even emergency funds in debt MF.
In an effort to put to productive use the gold lying idle with households and trusts, State Bank of India has mobilised 13,212 kg gold through the Gold Monetisation Scheme (GMS). SBI collected 3,973 kg of gold in the last financial year under the GMS programme, launched by the Narendra Modi-government to utilise gold lying idle with individuals as well as trusts, according to SBI’s annual report. With the collection of the last fiscal, the total gold reserves of SBI has crossed over 13,000 kg. Prime Minister Narendra Modi launched the GMS in November 2015 to cut India’s import bill and use the idle lying gold for productive purposes.
Gold once again has emerged as one of the best performing asset class in 2020 after stupendous 2019. Gold prices got shot in the arm after US Federal Reserve chief warned that a full recovery of the US economy could drag through 2021.