India imported 321 tonnes of gold in the March quarter, more than double the 124 tonnes imported a year ago. A couple more months of strong demand could support gold prices
The second wave of Covid-19 infections and the lockdowns being imposed across the country are adding to investors’ anxiety. Though these developments could delay economic recovery, they are likely to be positive for a safe-haven investment like gold. Already, the yellow metal has risen 6.2 per cent from its one-year low.
“The uncertainty on the pandemic front is back. New waves and variants of the virus, and the resulting lockdowns, could trigger pullbacks in risky assets like equities. Gold could benefit from the resulting risk aversion, as happened last year,” says Chirag Mehta, senior fund manager, alternative investments, Quantum Asset Management Company.
According to Hareesh V, head of commodity research, Geojit Financial Services, “Any signs of weakness in the global economy could
First Published: Apr 17 2021 | 06:10 AM IST