Gold prices could spike up amidst US-Iran tensions

Tensions in Gulf countries have increased once again following the death of Iran General Qasem Soleimani in US military action. Experts believe that if Iran retaliates, which is quite possible, then it will have an impact on the economy of the whole world. Market experts believe that this may also have an impact on the gold rate. This year gold can be Rs 45,000 per 10 grams. There are many political events in this world, such as the US-Iran conflict, China-US trade war, US-Korea relations, economic concerns, dollar price, rupee volatility etc.

When does the gold rate rise

Whenever there is a crisis in the world, gold starts getting expensive. According to data from the World Gold Council, central banks in 14 countries of the world have increased the amount of gold in their gold reserves by 1 ton or more. India is also among these 14 countries.

These are the main reasons

• According to Comtrange Research, geopolitical events in 2020 will increase investor concerns
• The stock market will be at a new height due to the interest rates worldwide, investment in gold will increase.
• The result of the US presidential election will also affect this.
• RBI was one of the main buyers of gold in 2019 and increased its reserves by 60 tonnes of gold.
• China and Russia have been the biggest buyers of gold so far. Apart from India, Turkey, Poland, Kazakhstan are also included in this race.

This was the price of gold in early 2019

Gold was more attractive to consumers until early 2019, when it was priced between Rs 31,500 to 32 thousand per 10 grams. The decrease in demand began to decrease as prices rose in June. Gold became expensive in the domestic market after the rupee weakened and the government increased customs duty. Later it increased to around Rs 40,000 by the end of the year.

Ajay Kedia, managing director of Kedia Advisory, also believes that as global tensions rise, investors turn to gold and silver for safe investment. Gold can go from 43000 to 44000 in 2020. He gives many reasons for this. Kedia says that the rise in gold is not for a couple of years but for 3 to 5 years. Apart from this, investment in Brexit, Negative Bond Deals, Central Bank Buying ETFs, Weakness in Dollar, Geo-political Tension, Large Correction in Equity Market can also be the reason for the rise in Gold Rate.

As far as silver is concerned, silver can attract people more than gold. Its biggest is the gold-silver ratio, which was on the high label for the first time in 30 years. Even today, silver is much cheaper than gold. In the year 2020, it can reach from 58000 to 60000 rupees per kg. If silver breaks the barrier of Rs 60000 per kg then it can reach 75000.