Top Gold ETFs To Invest

Gold prices after phenomenal gains of over 20 percent during the last year have been retreating lower since the beginning of 2021 owing to gains in the US treasury yield which led the dollar higher as more people flocked to the greenback to buy those bonds. Notably, after the first month of the April quarter has been good for gold with the precious metal climbing above $1770 levels, a number of uncertainties continue to remain.

Now factors that still show there is upside left in gold

1. Vaccination against Covid 19 is still at a very pace

2. Covid 19 second wave is India has been very intense

3. It cannot be said whether the US stimulus aid released shall be sufficient to support the economy which for the first quarter reported a GDP number of 6.4 percent that is indeed encouraging.

4. New mutants continue to disrupt global economic recovery

5. Easy monetary policy continues and this has favoured the appeal for gold.

6. World's largest economy, the US has since the start of the year 2021 has released $6 trillion into the economy and there shall be continued spending in an unabated way and hence there is a threat of inflation. Gold serves as a hedge against inflation.

7. Geopolitical unrest between the US and Russia as the US imposed sanctions on Russia for unnecessary interfering in the US elections of 2020

8. Gold demand has seen a rise in the first quarter in India owing to softening of prices and pent up demand, this also initially led to a surge in gold prices.

Now for these and several other factors, there is still room for upside in gold prices which are considered to have bottomed out for now and are headed for recovery. And so, there is anticipated gains for gold going ahead in the near to medium term.

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