Gold holds the lustre high; 9 points why gold is in high demand

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When stock markets are in a bullish phase, it is usually believed that during that period there will be a decrease in demand for gold. However, with current trends, the yellow metal seems to be defying this popular belief among experts. Since April 2021, the domestic stock market has been showing a bullish trend. In the midst of this strong boom, there has been an unexpected increase in the demand for gold in the third quarter of 2021. According to the report of the World Gold Council (WGC), there will be a sharp jump in the future.

What does the report say?

– The demand for gold in the domestic market was 139.1 tonnes in the September quarter

– In the same period, last year, the consumption of gold in the country was 94.6 tonnes.

– There was a jump of 47% in consumption before the festive season

– With the surge in overall demand, it witnessed a 187% increase in imports

– In the June-September quarter, over 255.6 tonnes of gold was imported

– In the June-September quarter of the year 2020, 89 tonnes of gold was imported

– Demand will increase in the next quarter on the occasion of Dhanteras-Diwali

– Recycling fell by half (20.7 tonnes) in the September quarter

– Central banks around the world are increasing the amount of gold in currency reserves

According to experts, this trend is being observed due to the impact of the Covid-19. The steps taken by the government to handle the economy have strengthened the stock market. Ajay Kedia, director of Kedia Advisory, said that investment in gold is increasing due to reduced interest rates, inflation, and Covid-related concerns. This trend will continue for the next one and a half years. In the next three months, gold prices can be seen going beyond Rs 50,000, which makes it a good opportunity for investment.