Gold is not the right time to invest, know what is the condition of the market and prices

In view of the ongoing war and lockdown from Corona, gold futures crossed Rs 45,000 per 10 gram on Tuesday. On April 3 last, gold futures price was Rs 43,712 per 10 grams. The Sensex also gained 2476.26 points on Tuesday on the previous trading day. However, experts in the bullion market say that this is not the right time to buy gold as countries around the world are fighting the war with Corona and the physical demand for gold will be very low at the moment. 

China and India have the highest demand for gold in the world and both countries are currently trying to protect themselves from corona. Mumbai’s bullion dealer Manish Jain said that there is a big difference between the gold futures market and the physical market. The physical business of gold has been closed since March 20, before the lockdown began. It is difficult to say whether the futures market is traded by select traders, so the momentum will continue even further. 

Right now and after the lockdown opens, people will be busy trying to save their businesses and jobs. As such, there is no possibility of a rise in demand for gold in the coming times. If gold goes to Rs 35,000 at 10 grams level, then demand for gold can definitely come out. According to bullion traders, despite all this, gold may tempt investors more because looking at the graph of the past one month shows that the decline in gold is less than the stock market which creates confidence in investors. 

Due to Covid-19, the Indian stock market fell by 25 per cent in the last one month, while gold by 10-12 per cent. The stock market had crossed the 40,000 mark, coming down to 30,000. The physical price of gold came down to Rs 45,000 per 10 grams last month, but soon the price started to fall. On March 17, the spot price of gold reached Rs 40,000 per 10 grams.