Gold Sees Huge Choppiness On Rising Corona Cases And Declining Yield And Dollar

Gold prices in the international market on Wednesday (January 13, 2021) edged higher as the recent rally in dollar index as well as gains in US treasury yield hit a pause. Also, another factor that boosted the appeal of gold as a safe haven is the rising coronavirus cases globally after the new mutuant Covid 19 virus was traced in the UK. There has been a surge in corona positive cases globally with many counters considering or enforcing stricter lockdowns to combat the virus.

Spot gold rose 0.1% to $1,856.86 per ounce by 0052 GMT, while U.S. gold futures gained 0.8% to $1,858.10.

Back home, on the MCX, gold lost Rs. 261 to again hit levels of over Rs. 49000 per 10 gm.

The U.S. House of Representatives plans to vote as soon as Wednesday on an
article of impeachment charging President Trump with inciting insurrection after his supporters stormed the Capitol. Also, another factor that needs attention is the increasing lay-off that dents faster recovery from the pandemic.

So, as investors now prices of gold have corrected and we may see further correction going ahead as there is a threat to economic recovery and other geopolitical unrest situation that continues to lurk, gold though has bright prospects, investors can bet on the yellow precious yellow at dips in a staggered portfolio to hold up to 15% of gold in their total investment portfolio.

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