Gold prices expected to rise significantly in 2020

By

Isabelle Crossley

Published
Dec 31, 2019

Gold prices in India are expected to remain high in the new year, and prices could even reach Rs 45,000 ($631.25) per 10 grams, as domestic and international pressures keep prices on the increase.

 
After increasing prices this winter, gold prices are showing no signs of falling, the Press Trust of India reported. The year 2019 saw fluctuating gold prices, but the second half of the year marked a sharp price increase, which led many jewellers to see an increase in the purchasing of lower-priced items during the recent festive season.
 
“Indian demand also lost significant momentum in Q3, and though Q4 saw a revival with its traditional wedding and festival season, overall demand for the full year is expected to be at the lower end of 700-750 tonne,” the World Gold Council’s managing director for India, Somasundaram P R, told the Press Trust of India, stating that local currency prices rose in numerous markets. “

ETF [Exchange Traded Fund] demand in the U.S. and Europe, and central bank buying across nations, however, continue to be strong."
 
Many of the conditions that led gold prices in India to rise are expected to continue.

The ongoing Sino-American trade dispute and conflict in the Middle East are expected to continue and the U.S. presidential polls are expected towards the end of 2020. The Indian jewellery industry has experienced a slowdown, but the Union Government is still pushing to increase exports as part of its “Make in India” campaign and working to further organise the jewellery market.