Thiruvananthapuram: Huge fluctuation was witnessed in the gold price during 2020. The price of one sovereign of gold which was at Rs 29,000 rose by 13,000 in eight months and reached Rs 42,000.
Things have come to such a pass that a common man would burn his hand if he were to touch gold at the current prices.
At a time when Covid pandemic created huge uncertainties in the global market, gold attracted global investors as a safe investment which also resulted in the shooting up of prices. Though the price of gold came down subsequently, at the moment it is over Rs 37,000, a sovereign. The gold prices also broke all records in the international market in 2020.
Recording breaking hike
2020, January 1
International market - troy ounce (31.1 grams) - 1519 dollars
Kerala Market - Rs 3625 per gram, Rs 29,000/sovereign
August 7:
International market - 2080 dollars
Kerala Market - Rs 5250 / gram, Rs 42,000/ sovereign
Gold price has increased continuously for 27 days from July 14 to August 7 . Even though the prices came down in September, it stood at 38,000/ sovereign till recently.
Factors that affected gold prices
Markets came to a standstill due to Covid pandemic
Economic slowdown due to Covid
Investors bought large quantities of gold
Weakening of currencies including dollar
Trade war between America and China
American elections
Lowering of interest rates by central banks of various countries 2020 was also the year when people sold off their gold in bulk following a hike in prices. The investment in gold bonds and gold EDFs also increased in 2020.
