There has been a steady drop in gold prices so far this year. This has led to a six per cent fall in gold prices. With January 2021, gold is the worst start in the last 30 years. According to a Bloomberg report, gold began its worst in 1991. After this, gold has started its worst in 2021. Investors have suffered losses so far this year.
Gold is falling for four reasons
1. Increasing investor trend in Bitcoin
Cryptocurrency has been a huge gain for Bitcoin investors. In 2020, the price of bitcoin is reported to be five times higher than in 2019. So far this year, the price of Bitcoin has risen by 79%. Bitcoin price crossed new levels of $ 51,431. Investor trends have shifted from gold to bitcoin.
2. The demand for silver has increased
Industrial activity is back on track fast after the corona infection has been alleviated. This has led to a rapid increase in demand for silver. There is a decline in gold. Investors are getting higher returns on silver than gold. So, investors are investing in silver instead of gold.
3. Better returns on the dollar and US yields
Investors have enjoyed huge returns in the dollar and US yields amid the corona crisis. With this, the risk is even lower. With this in mind, investors are once again withdrawing gold and putting it in dollars, which is dominated by sales.
4. The stock market is booming
Since the corona crisis, there has been a big drop in the stock market. After that, investors turned to gold for a safer investment. However, the stock market has been making progress for the past nine months. With this, investors are once again putting money into the market and running out of gold. So gold is falling.
Gold was cheaper from a high of Rs 11,000
If we look at gold prices, gold is at its highest level at Rs 11,000. On August 7, gold hit a high of Rs 56200 per 10 grams, after which gold prices were falling. Gold at Delhi’s Sarafa Bazaar fell to more than 46,000 on Sunday. At the same time, gold was trading at APCX last week at Rs. And silver at Rs.
Gold Price Review: Gold is cheaper at Rs 3292 in February, silver is also weak, know how it moves