Gold prices fell by more than Rs. 10,000 to Rs. 11,000, know whether the investment will give strong profits at the current price

New Delhi. Gold is considered to be the biggest help during difficult times. During the Corona crisis, gold showed this saying to be true. In the year 2020, those who put money in gold made huge profits. Gold Prices closed at the highest level of Rs 57,008 per 10 grams on 7 August 2020 in Delhi Sarafa Bazar. Since then, the price of this precious yellow metal has fallen by Rs 11,409 till Friday 26 February 2021. At the same time, silver was at Rs 77,840 per kg on August 7, 2020, which has been reduced by Rs 10,421 to Rs 67,419 on Friday. Now however, due to falling prices every day, most of the investors are wondering whether they should invest in gold or wait for something else. At the same time, some investors are confused about selling or holding the gold they have. Let us know what can be the right step for investors?

US Bonds Increase Yield Impact on Gold Prices
There is also a large section of investors, who want to know whether it will be safe to invest in gold at current prices. Can they take advantage of this opportunity and make a strong profit? On this, Surendra Mehta, National Secretary of the India Bullion and Jewelers Association (IBJA) recently said that there are many reasons for the fall in gold prices. The biggest reason of these is the dollar being stronger against other big currencies. According to him, the US dollar and gold behave unlike each other. If the demand for the dollar increases, then the price of gold will come under pressure. At the same time, due to the increase in American Bonds Yield, prices of gold have also come down.

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Mehta says that after the commencement of corona vaccination and a spurt in economic activity, people are now turning to more risky investment options for stronger profits. These include options such as equity and cryptocurrency. However, they feel that the fall in gold prices is temporary and short-lived. Therefore, investors can earn excellent profits in the long term by investing in gold at current prices. In contrast, there seems little scope for the equity boom to last long. Therefore, getting out soon after earning a profit is being said to be a better option. If there is a fall in the stock markets, then investors will go to gold again and its prices will increase rapidly. According to him, gold can touch a high of $ 1960 an ounce within 3 to 4 months, which will be about $ 150 more than now.

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Gold can touch new level in 2021, experts estimate
Chirag Mehta, senior fund manager at Quantum Mutual Fund, has said that the main reason for the decrease in gold prices is the increase in the US Benchmark Bond Yield. The benchmark bond yield has shocked the market. In August last year, where it was at a low level of 0.6 percent, now it has more than doubled to 1.37 percent. Due to this, there has been a fall in the prices of gold. However, he does not think that this situation will remain for long. If the yield increases again, the central bank will intervene. This will support gold again. Experts believe that the price of gold is set to increase in 2021. Also, 7-10 per cent of gold brings diversification in your investment portfolio. Experts predict that once the price of gold starts increasing, it will cross the level of Rs 62,000 per 10 grams.

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