TIWN
New Delhi, Feb 6 (TIWN) Demand for gold is expected to reach pre-Covid-19 pandemic levels in 2022 aided by higher savings, increased mobility and stable price levels, said Chirag Mehta, Senior Fund Manager-Alternative Investments at Quantum Mutual Fund.
Pent-up demand for gold started in 2021.
"Even as the Fed is sounding more hawkish every day and Covid-19 is most likely behind us, demand for the yellow metal is getting support from higher inflation, market volatility, US-Russia tensions over Ukraine and the drop in Bitcoin," Mehta said in a report.
SPDR Gold Shares, the largest gold-backed ETF, recorded its biggest daily net inflow since listing in 2004 worth $1.63 billion in January. This clearly indicates investors' interest in the yellow safe-haven metal.
"It's clear now that central banks face difficult choices in the post-pandemic environment and how they navigate this will determine gold's trajectory this year. While the current era of US monetary policy will be challenging for the metal, inflation and other risks as outlined above will keep the asset class relevant."
- India emerging as promising alternative to China for chipmaking equipment firms
- India to remain Asia-Pacific's fastest growing economy in 2024: Moody’s
- CII pegs India’s GDP growth at 8 pc for 2024-25
- Global fund investments in India will accelerate in future: Analysts
- Nifty closes at 23,398 after touching all-time high