The gold price was on the rise in May 2021 due to the second wave of COVID-19. The markets were volatile as several states brought back lockdown restrictions to curb the spread of the virus. This naturally set a cloud of uncertainty over markets, which pushed gold prices higher as investors flocked to preserve their capital.
However, the stock markets did not fall like they did last year when the nationwide lockdown was announced in the second half of March. This meant that the gold price did not rise significantly, but enough to make the yellow metal costlier by a considerable extent.
As you might already know, gold is considered a safe haven. At uncertain times like these, gold and precious metals surge due to the increased demand. The gold prices in the global markets hit their four-month peak in May 2021 and were volatile in the last week as the economic and GDP numbers of the US were awaited.
The gold price per gram of 22-carat gold was Rs 44,170 on the 1st of May 2021. It recorded its monthly peak on the 26th of May at Rs 46,800, while it was most subdued on the 2nd of May at Rs 44,160. Over the month, the gold price per gram of 22-carat gold increased by 5.73% or Rs 2,530.
The gold price per gram of 24-carat gold recorded a gain of 5.60%, or Rs 2,530, over the last month. It opened the month at Rs 45,170 and closed at Rs 47,700. Its range for May 2021 was Rs 2,640, with its monthly high at Rs 47,800 and low at Rs 45,160. The monthly gain recorded in May 2021 was nearly 4% higher than in April 2021.
The gold price is expected to remain on the higher side until the health crisis caused by the novel coronavirus subsides. As per the data released by the Association of Mutual Funds in India (AMFI), gold ETFs recorded a net inflow of Rs 680 crore in April 2021, while this number is expected to be higher for May 2021, it will be announced soon.
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