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The COVID-19 pandemic has affected almost all the economies across the world. The governments of all nations affected by the sudden outbreak of the virus have declared a lockdown until the situation gets under control. More than 200,000 people have died combating the serious disease while millions of people are infected with this transmissible virus. Amidst the coronavirus epidemic, the prices of the gold are expected to remain unchanged.
If research is to be believed, then the gold prices will touch $1800 mark by the end of July 2020 and it will cross $1900 by September this year. The prices of gold will be somewhere between INR 50,000 and INR 52000 during September in 2020. Moreover, the lower long-term rates can have a positive impact on the prices of this precious metal. There is no denying that the share market has become one of the most-impacted markets in the globe. However, the unstable equity market will be open to gold investors. According to the studies, investors who are planning to diversify their portfolio by investing in metal commodities will invest in gold. The share market is expected to witness an average portion of commodity investors in the coming months.
Currently, banks are quite confident about the gold. There is a chance it may affect their HNI (high net worth individuals). The current liquidation crisis in other commodities and metals are the main reasons that resulted in gold liquidation. This brought the value of this precious metal back to approximately $1450. However, this value stayed intact for only a short period of time. Thereafter, the rates of this yellow metal touched the former price i.e. $1720 and $1740.
There is no doubt the demand for gold and other assets has drastically fallen after the coronavirus pandemic hit the developing and developed countries hard. Ever since the news of the virus broke, people started to stock up on their basic goods. The good news is that the lack of demand for gold in India, China, and other countries has no major impact on the current prices of this precious metal. In fact, the strict environmental regulations may slow down the growth of the economies and result in lesser productivity than usual. If that happens, the prices of the gold will go up.
Even the research and technical analysis are expecting an uptrend in the gold prices. The price of the commodity has already touched $1700. If the price keeps rising, then it won't take long for this metal to touch $1800 to $1950 in the future. While Coronavirus pandemic has affected the productivity across all industries, the only sector that is growing amidst the pandemic is gold. The only factor that could bring down the prices of the metal is the launch of the coronavirus vaccine. It can bring the prices down to $1600. This is possible because the lockdowns will be lifted and every industry will be back to normal. Investors will have more attractive investment options.