Attractive equity markets and volatile gold prices deterrents for investment in the yellow metal
Published On: Thursday, July 29, 2021 | By: Team KnowMyStock
Attractive equity markets and volatile gold prices may prove to be a deterrent for investment in the yellow metal in the second half of 2021, suggests the latest report from World Gold Council (WGC). That said, the upcoming festival season, including Dhanteras and the wedding season in the October – December quarter of 2021, WGC believes, may see an uptick in demand for the yellow metal. “Consumer investment in gold increased in the second quarter of 2021, but some investors were less bullish. Outlook for the second half of 2021 is yet uncertain, as consumer confidence and business response are subject to the impact of a looming threat of the third wave of Covid and the pace of economic recovery,” said the WGC report. But attractive equity markets and volatile gold prices may prove to be a deterrent for investment in the yellow metal in the second half of 2021.
“I do not see any major stress points for the Indian stock markets at least till December 2021-end. The outcome of the recent US Fed meet and the ample liquidity sloshing around will keep markets in good spirit. That apart, economic recovery and a good monsoon will keep markets afloat. In this backdrop, investment in safe haven assets like gold will take a backseat,” say some analysts.
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