Keep buying gold, says veteran investor Mark Mobius1 min read . Updated: 24 Jul 2020, 11:26 AM IST
- In India, gold prices are up about 30% this year
- When interest rates are zero or near zero, then gold is an attractive option: Mark Mobius
Veteran investor Mark Mobius, who has been bullish on gold for quite some time now, says the yellow metal still remains "attractive" option despite a big rally this year. In global markets, gold has approached the level of $1,900 an ounce, set almost nine years ago, buoyed by safe-haven demand.
“When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold and you see the gold price will rise as uncertainty in the markets are rising," Mark Mobius, co-founder at Mobius Capital Partners, said in a Bloomberg TV interview.
“I would be buying now and continue to buy, because gold is really on a run, it’s doing well."
In India, gold prices have already breached the key ₹50,000 per 10 gram level amid a record-breaking rally this week. So far this year, gold prices in India are up 30% in the futures market.
Increasing concerns that the resurgence in new coronavirus cases in many countries is stalling a global economic recovery and the renewed surge in tensions between the US and China are supporting the safe-haven demand for gold.
UBS Group AG raised its near-term forecast for gold to reach $2,000 an ounce by the end of September, citing its qualities as a diversifier in a low-rate world.
On the geopolitical front, China ordered the US today to close its consulate in the Chengdu, ratcheting up a diplomatic conflict at a time when relations have sunk to their lowest level in decades.
The move was a response to the Trump administration's order this week for Beijing to close its consulate in Houston after Washington accused Chinese agents of trying to steal medical and other research in Texas. (With Agency Inputs)