In India, both gold and silver have logged strong gains in 2020. Gold is up about 27% so far this year while silver has gained around 50% amid a tumultuous year. Gold touched its all time high of ₹56,200 in August. Similarly, silver had also almost touched ₹80,000 per kg in the same month. Currently, gold futures on MCX are priced at ₹50,180 and silver at ₹68,224. Rising Coronavirus cases around the globe are raising uncertainty on the economic revival and increasing safe haven bets for bullion and silver, say the experts at ICICI Securities.
The analysts at the above mentioned brokerage house expect a bullish trend in gold prices to continue in 2021 towards ₹65,000. "In addition, massive amounts of stimulus into the global economy are also attracting investments into safe assets such as bullion."
The brokerage expects bullish trend in silver as well in 2021. It says, silver might move towards ₹90,000.
"Investments into silver-dependent greener technologies such as solar panels and electronics, are rising around the world along with broad based dollar weakening that is making silver cheaper for holders of other currencies. In addition to that, rising Coronavirus cases around the world are raising uncertainty on an economic revival and increasing safe-haven bets," says ICICI Securities.
In global markets, gold prices finished 25% higher for the year in 2020, logging its biggest annual gain in a decade amid unprecedented wave of stimulus by central banks and governments and the dollar’s decline.
