Gold Crosses Rs 40,000/10 Grams First Time Ever; Should You Buy It Or Sell It?
According to updates coming from commodity market on monday gold has reached its all time high at Rs 40,000 per 10 grams. It has surged around 1 percent which is it all time high in gold history.
This yellow metal futures touched a record high of Rs 39,196 per10 grams.Making its profit gain by 25%.
While local Silver futures were also at 1 per higher and trading at Rs 45,148 per kg which was last seen in October 2,2016.
The rush in yellow metal prices are the effect of ongoing increase of trade tension between the US and China. As an increased demand for safe assets.
Adding to this, depreciation of Indian rupee also helped in the rise of gold prices in the international market. The currencies from India and some other Asian countries became pressurized due to strong demand of US dollars from banks.
Historical Gold Price Trend In India
This yellow metal prices are affected by many factors like demand and supply in the international market, Government reserves,central bank stability, quantitative easing, health of jewellery industry and over all year production and many more.
Last year in 2018 gold price fluctuations were due to geopolitical tensions in the United States.
Gold prices fluctuate throughout the year and the amount given below is an average for representation for the mentioned year. (reference)
|Year||Price (24 karat per 10 grams)||Year||Price (24 karat per 10 grams)|
|1964||Rs. 63.25||1992||Rs. 4,334.00|
|1965||Rs. 71.75||1993||Rs. 4,140.00|
|1966||Rs. 83.75||1994||Rs. 4,598.00|
|1967||Rs. 102.50||1995||Rs. 4,680.00|
|1968||Rs. 162.00||1996||Rs. 5,160.00|
|1969||Rs. 176.00||1997||Rs. 4,725.00|
|1970||Rs. 184.00||1998||Rs. 4,045.00|
|1971||Rs. 193.00||1999||Rs. 4,234.00|
|1972||Rs. 202.00||2000||Rs. 4,400.00|
|1973||Rs. 278.50||2001||Rs. 4,300.00|
|1974||Rs. 506.00||2002||Rs. 4,990.00|
|1975||Rs. 540.00||2003||Rs. 5,600.00|
|1976||Rs. 432.00||2004||Rs. 5,850.00|
|1977||Rs. 486.00||2005||Rs. 7,000.00|
|1978||Rs. 685.00||2006||Rs. 8,400.00|
|1979||Rs. 937.00||2007||Rs. 10,800.00|
|1980||Rs. 1,330.00||2008||Rs. 12,500.00|
|1981||Rs. 1,800.00||2009||Rs. 14,500.00|
|1982||Rs. 1,645.00||2010||Rs. 18,500.00|
|1983||Rs. 1,800.00||2011||Rs. 26,400.00|
|1984||Rs. 1,970.00||2012||Rs. 31,050.00|
|1985||Rs. 2,130.00||2013||Rs. 29,600.00|
Buy It Or Sell It?
According to money control the sentimeter suggests to buy gold by 40% users and sell by 54% users.
The remaining 4% are suggesting to hold it for some more time since they are expecting more improvement in the coming months. (reference)
Some traders are suggesting to buy it since they think that gold prices will gain more in the coming months and they can make some profit out of it.
It could be a good decision as we can in the chart that for the years 2017-18 gold has reached around 32,000 range and it continued to hold the position and did not go down.
While majority proportion with 54% thinks that it’s the best time to sell as gold has reached a record high of six years.
Let’s keep an eye on this segment as festival and marriage season is around the corner.