Gold Rate Today: Gold at all time high, price may double this year, know why gold is rising – gold on all time could reach double in this fiscal year as inflation recession fears linger
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According to Juerg Kiene, managing director and chief investment officer at Swiss Asia Capital, gold could go up to the level of $4,000 an ounce this year. He said that there will not be a 10-20 percent rise in gold, but there can be a huge jump in it. There are recession-like situations in many countries. Due to this, the Central Banks can slow down the rate of increase in the interest rate in the coming days. This will increase the shine of gold again. Gold is the only asset that every central bank has. According to the World Gold Council, central banks bought a record 400 tonnes of gold in the third quarter. In the 2000s, gold has given 8 to 10 percent returns annually. This is not the case in the bond market and equity.
Gold had sprung in 2020
Gold is currently trading at the highest level since March 2022 in the international market. Gold reached a new high in 2020 due to the Corona epidemic. The lockdown had created an atmosphere of uncertainty, with fears of a recession looming large and the US dollar depreciating. It was the perfect condition for the gold to shine. The Fed had reduced the interest rate to zero overnight due to the economic lockdown. Gold benefited from falling US bond yields and rising inflation. But as interest rates rose, the appeal of gold declined. But once again the luster of gold has started increasing.
Russia’s gold reserve increased by one million ounces last year. China has also bought 102 tonnes of gold this year. Not only this, there is a lot of pressure on the US dollar for the last few weeks. Countries like Saudi Arabia, Russia and Brazil are trading with China not in dollars but in yuan. The pressure on the dollar is increasing the shine of gold. Meanwhile, America is also facing a banking crisis. About 400 billion dollars have been withdrawn from the banks in four weeks. Investors are investing in bitcoin and gold by withdrawing money deposited in banks.
Gold and silver will make you rich this year, expect 20 and 30% returns, know where the prices will reach
one trillion dollar withdrawal
According to JP Morgan, in the last two years, one trillion dollars has been withdrawn from America’s weak banks. The regional banking system has fueled this trend. Gold has benefited from this. The month of March 2023 has been the month of highest deposit outflow in US history. Not only this, the possibility of putting brakes on the increase in interest rates of America is increasing. Due to these reasons, there is a possibility of a significant increase in the price of gold in the coming days.
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