Gold%20has%20always%20been%20the%20first%20refuge%20of%20nervous%20investors%20in%20times%20of%20crisis.%20It%20doesn%u2019t%20matter%20what%20kind%20of%20crisis%20it%20may%20be%3A%20short%20lived%20or%20of%20a%20longer%20duration%2C%20global%20or%20closer%20home.%20Whenever%20investors%20perceive%20risk%20and%20need%20less%20volatility%20in%20investments%2C%20there%20has%20always%20been%20flight%20of%20capital%20towards%20the%20yellow%20metal.%20Investing%20in%20gold%20has%20been%20perceived%20as%20one%20of%20the%20safest%20ways%20to%20multiply%20returns.%20During%20the%20global%20economic%20crisis%2C%20the%20Lehman%20moment%20in%202008%2C%20gold%20prices%20had%20surged%20by%20more%20than%20a%20third.

In%20the%20gold%20pecking%20order%2C%20India%20is%20at%20the%20top%20as%20the%20largest%20importer%20of%20the%20yellow%20metal%20to%20satisfy%20the%20huge%20annual%20demand%20for%20jewellery.%20So%2C%20it%20was%20no%20wonder%20that%20amid%20the%20most%20serious%20international%20crisis%20ever%2C%20the%20COVID-19%20pandemic%2C%20gold%20prices%20witnessed%20record%20highs%20in%20India%20last%20year.%20By%20August%202020%2C%20the%20price%20of%2010%20grams%20of%20gold%20had%20reached%20the%20highest%20ever%20mark%20at%20Rs%2056%2C000%20per%2010%20grams.%20While%20prices%20were%20shooting%20up%20to%20record%20highs%2C%20though%2C%20demand%20for%20gold%20was%20declining%20-%20also%20to%20record%20lows.%26nbsp%3B

Also%20Read%20%7C%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/india-out-of-recession-but-recovery-remains-tentative%22%3E%3Cstrong%3EIndia%20out%20of%20recession%20but%20recovery%20remains%20tentative%3C/strong%3E%3C/a%3E

But%20slowly%2C%20as%20the%20global%20lockdowns%20started%20to%20get%20lifted%20across%20markets%20from%20the%20December%20quarter%20and%20economic%20activity%20returned%2C%20demand%20for%20gold%20improved%20-%20and%20prices%20started%20to%20slide%20off%20record%20highs.

According%20to%20the%20World%20Gold%20Council%2C%202020%20marked%20a%20new%20low%20for%20Indian%20gold%20demand%20since%20it%20was%20lower%20by%2042%25.%20But%20as%20the%20global%20economies%20began%20opening%20up%2C%20the%20demand%20shortfall%20in%20the%20December%20quarter%20was%20just%208%25%20year-on-year.%20And%20the%20average%20gold%20price%20for%20the%20October-December%202020%20period%20was%20Rs%2050%2C195%20per%2010%20grams.

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While%20this%20was%20still%20nearly%20a%20third%20higher%20%2832%25%29%20year-on-year%2C%20it%20a%202%25%20decline%20from%20the%20September%20quarter%20and%2010%25%20below%20the%20all-time%20high%20of%20Rs%2056%2C000%20per%2010gm%20from%20early%20August.%20The%20correction%20in%20the%20local%20gold%20price%20to%20below%20the%20key%20psychological%20level%20of%26nbsp%3B%20Rs%2050%2C000%20per%2010%20grams%20for%20much%20of%20December%20spurred%20bargain%20buying%20and%20pent-up%20demand.

Now%2C%20since%20the%20beginning%20of%20the%20new%20calendar%20year%202021%20too%2C%20the%20gold%20price%20rally%20is%20on%20the%20wane.%20According%20to%20data%20from%20the%20Indian%20Bullion%20%26amp%3B%20Jewellers%20Association%20%28IBJA%29%2C%20the%20price%20of%2010%20grams%20of%20gold%20was%20Rs%2047%2C528%20on%20February%2012%20and%20within%20just%20one%20month%2C%20it%20has%20declined%20by%20nearly%20Rs%203000%20to%20Rs%2044%2C601%20on%20Friday.%20So%20gold%20prices%20are%20already%20down%20by%20more%20than%20Rs%2010%2C000%20per%2010%20grams%20from%20highs%20during%20the%20pandemic.%20And%20they%20could%20continue%20to%20slide%20further.

Also%20Read%20%7C%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/rbis-optimism-on-economic-recovery-spells-cheer-for-the-aam-aadmi%22%3E%3Cstrong%3ERBI%27s%20optimism%20on%20economic%20recovery%20spells%20cheer%20for%20the%20%27aam%20aadmi%27%3C/strong%3E%3C/a%3E

Ratings%20agency%20CARE%20Ratings%20has%20noted%20that%20gold%20started%20declining%20in%20February%20this%20year%20due%20to%20a%20rise%20in%20global%20interest%20rates%20and%20the%20consequent%20low%20liquidity%20creating%20pressures%20on%20the%20international%20prices%20of%20the%20yellow%20metal.%20The%20roll%20out%20of%20vaccines%20across%20several%20countries%20since%20the%20beginning%20of%20the%20calendar%20year%20and%20the%20consequent%20hope%20of%20a%20faster%20global%20economic%20recovery%20also%20%u201Ccapped%20the%20upside%20potential%20of%20gold%20price%20movement.

However%2C%20the%20downside%20potential%20of%20this%20metal%u2019s%20prices%20was%20restricted%20by%20the%20gradual%20spread%20of%20new%20strains%20of%20Covid-19%20which%20led%20to%20fresh%20lockdowns%20in%20various%20cities%20of%20developed%20nations%20like%20UK%20and%20Canada%2C%20among%20others.%u201D

Surendra%20Mehta%2C%20National%20Secretary%20of%20the%20IBJA%20said%20that%20gold%20prices%20could%20fall%20further%20and%20there%20were%20several%20reasons%20for%20the%20decline.%20First%2C%20he%20said%20the%20uncertainty%20over%20crypto%20currencies%20globally%20was%20leading%20to%20a%20flight%20of%20investment%20away%20from%20gold%20and%20into%20cryptos.%20Second%2C%20rising%20bond%20yields%20will%20also%20lead%20to%20a%20decline%20in%20the%20prices%20of%20gold.%20And%20third%2C%20the%20receding%20threat%20of%20the%20pandemic%20%u2013%20through%20vaccine%20rollouts%20etc%20%u2013%20is%20also%20affecting%20gold%20buying%20sentiment%2C%20pushing%20down%20prices.

Also%20Read%20%7C%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/economic-pain-may-persist-next-fiscal-govt-needs-to-open-up-purse-strings%22%3E%3Cstrong%3EEconomic%20pain%20may%20persist%20next%20fiscal%2C%20govt%20needs%20to%20open%20up%20purse%20strings%3C/strong%3E%3C/a%3E

Mehta%20also%20spoke%20of%20central%20banks%20and%20various%20governments%20offloading%20the%20gold%20stocks%20they%20had%20accumulated%20during%20the%20pandemic%2C%20saying%20this%20is%20also%20depressing%20prices%20in%20the%20international%20market.%20%u201CThe%20central%20banks%20have%20offloaded%20just%20about%205-7%20tonnes%20of%20gold%20but%20what%20if%20they%20were%20to%20sell%2050%20tonnes%3F%20They%20were%20covering%20the%20risks%20during%20the%20covid%20period%20%28by%20buying%20gold%29%20but%20risks%20have%20receded%2C%u201D%20he%20said.%20%26nbsp%3B

Meanwhile%2C%20the%20CARE%20analysts%20also%20said%20it%20appeared%20as%20if%20the%20consistent%20gold%20rally%2C%20which%20had%20started%20due%20to%20signs%20of%20a%20global%20recession%2C%20has%20now%20ended.%20Month-on-month%20prices%20have%20been%20cooling%20off.%20These%20analysts%20also%20referred%20to%20the%20ongoing%20widespread%20rollout%20of%20vaccines%20and%20how%20this%20augurs%20well%20for%20investors%20who%20wish%20to%20park%20their%20money%20in%20riskier%20asset%20classes%20like%20stocks%20and%20hence%20lower%20portfolio%20weightage%20in%20safe%20haven%20assets%20like%20gold.

%26nbsp%3B

%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23gold%22%20data-user-id%3D%22wsF5Ohik63VD%22%20href%3D%22/topic/gold%22%3E%23gold%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Cryptocurrency%22%20data-user-id%3D%22L7OoyefNLuEh%22%20href%3D%22/topic/cryptocurrency%22%3E%23Cryptocurrency%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23GoldPrice%22%20data-user-id%3D%22WOzsHI6Wak04%22%20href%3D%22/topic/gold-price%22%3E%23GoldPrice%3C/a%3E%26nbsp%3B