Gold prices have started to escalate in April amid concerns of inflationary pressures, after a prolonged dull period, as the Covid-19 pandemic continues to hamper business growth. International gold prices hit a two-month high at $1,771.37 per ounce on Friday afternoon.
“Gold traded higher to a more than one-month peak as US treasury yields slipped despite better than expected US economic data, pushing investors to bullion as a refuge against possible inflation ahead,” said Navneet Damani, vice-president, commodities research, Motilal Oswal Financial Services.
The dollar eased against its rivals, while benchmark US bond yields hovered near a one-month low hit in the previous session.
“Concerns regarding inflation are increasing ahead of massive fiscal aid and ultra-low interest rates across the globe supporting the metal. Gold prices also got a boost when the US government imposed a broad array of sanctions on Russia for alleged actions such as interfering in the 2020 US election,” Damani said.
Damani feels international gold prices could be between $1,745-1,778 per ounce and on the domestic front prices could hover in the range of ₹46,850-47,450 per 10 grams.
After a massive rally of 28% in 2020 as investors rushed to buy the yellow metal, which is considered a safe haven, gold prices slumped in the first three months of this year, falling 6% in February.
{{/usCountry}}After a massive rally of 28% in 2020 as investors rushed to buy the yellow metal, which is considered a safe haven, gold prices slumped in the first three months of this year, falling 6% in February.
{{/usCountry}}However, gold prices gained nearly 4% in April so far as investors remained cautious about other asset classes.