Mumbai (Maharashtra) [India], December 22 (ANI): Investment consulting firm Millwood Kane International said on Tuesday that investments in gold gave gains of nearly 28 per cent in rupee terms during 2020 and will remain in focus for investors in the coming year.
"The yellow metal has had a phenomenal year with gains of nearly 28 per cent in rupee terms. After a double-digit gain in 2019, this will be the second year in a row that gold will be posting a stellar rise," said Founder and CEO Nish Bhatt.
Gold prices posted marginal gains in first two months of the year due to concerns of a slowdown in economic growth. A major uptick was seen in prices of gold from mid-March when COVID-19 hit the stage at a global level.
The gains were more in the month of August when MCX Gold hit an all-time, said Bhatt.
The outbreak of pandemic and a spurt in number of cases led to economic uncertainties. The excess liquidity injected by global central banks to boost growth led to investors flocking to gold which is considered a safe haven.
Bhatt said gold prices have shed nearly 10 per cent gains from their life-high levels as a vaccine was discovered which will help contain the virus and reduce global uncertainties.
"As we approach 2021, gold will remain in focus for investors as central banks across the globe have pledged to keep rates low and ease liquidity to aid growth," said Bhatt.
The latest installment of stimulus package from the US government will add to the existing dollar liquidity in the system and may end up weakening the greenback. A weak dollar may push up gold prices.
"The efficacy of the vaccine, proper implementation of the vaccination process in developing countries, low-interest rate regime, and the global central banks' stance on liquidity will guide gold prices in 2021," said Bhatt. (ANI)