If you look at the last one year, gold has given a huge return of 20 percent to the investors. Whereas this year it has given more than 10 percent returns. Whereas the Sensex has lost more than 2 percent this year.
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If the coming one year from here is going to be profitable for the stock market investors, then the stock market investors may feel disappointed. There is not one reason but eight. Due to which those who invest in gold can be chic, then stock market investors can also be affected. If you look at the last one year, gold has given a huge return of 20 percent to the investors. Whereas this year it has given more than 10 percent returns. Whereas the Sensex has lost more than 2 percent this year. The chances of further breakdown are visible. Let us also tell you what are those eight reasons, due to which gold investors can earn big money.
Price can be 70 thousand
In the next one year, the price of gold can go up to 70 thousand rupees per ten grams. According to statistics, till the next Akshaya Tritiya, there can be a rise of 15 to 20 percent in the price of gold. Many reasons are being told behind this, but the most important reason is considered to be the pause of the Fed policy and the fall in the dollar index. Due to these two main reasons, the price of gold will be seen getting support. On the other hand, due to geo-political tensions, a boom can also be seen. Apart from this, due to the fall in the stock market, the attitude of investors may turn towards bullion.
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Gold will increase due to 8 reasons
The effect of Fed policy will be seen
The Fed Reserve can press the pause button on its policy rate. This pause is likely to last for the whole year. Due to which the price of gold can be seen getting support. For more than a year, the Fed has been increasing the policy rate. Because of which there was a rise in the dollar index and a fall in the price of gold.
Inflation will show its colors
Global inflation may still persist. Two main reasons for this are being given as Ukraine-Russia war and crude oil production. Recently OPEC Plus has cut crude oil production. The effect of which can be clearly seen in the world. Petrol and diesel prices will increase. Gold investors can see the benefit of this.
fear of recession
Whenever economic recession is seen in the world, it is seen all over the world. From IMF to World Bank have cut the global growth rate. Because of which the chances of recession have increased. The IMF had said earlier this year that every third person in the world could appear in the grip of recession.
geo political tension
Geo political tension also encourages those who invest in gold. Because of which there is an increase in the price of gold. At present, a new kind of cold war has started between China and America. What is going on between Russia and Ukraine is not hidden from anyone. Tension between North Korea and America and Gulf countries is enough to take the price of gold to the 7th sky.
Gold ETF demand
Heavy buying by retail investors and outflows from slow exchange-traded funds (ETFs) helped annual gold demand hit an 11-year high, according to data from the World Gold Council.
Increase in demand for central banks
During the economic crisis, the demand for gold increases from the Central Banks. In the year 2022, central banks had bought gold worth about $ 70 billion, which is the highest since 1950. This year this figure can cross 100 billion dollars.
Demand will increase from China
China is the world’s largest gold importer. Till last year, China was stuck in zero covid policy. Because of which he suffered a lot. In the beginning of this year, China has opened everything by removing its policy. Because of which now an increase in the demand for gold from China can be seen.
stock market crash
The year 2023 has not been anything special for the stock market. So far, a decline of more than 2 percent has been seen in it. Whose more are likely to fall. According to experts, during the economic crisis, there will be a decline in the stock market. Because of which investors can turn towards gold.