Gold Price Trend Analysis: November 2020

The onset of the COVID-19 pandemic in the early parts of the year 2020 resulted in the gold prices touching record levels. The investors had turned towards the yellow metal to preserve their capital. This naturally meant that the gold prices soared and turned out to be unaffordable for many. 

However, things have changed over the last three months as the gold prices fell. This collapse in the gold prices has been attributed to the recovery in the stock markets and the speculation that a vaccine to treat the COVID-19 infection will be released soon. Also, relaxing the lockdown restriction and businesses opening up, powered the rallying in the markets. 

These developments over the last three months resulted in the gold prices falling of late. Over November 2020, the price per gram of 22 carats gold fell by Rs 2,720. It opened the month at Rs 49,960 and closed the month at Rs 47,240. Over the last month, it witnessed a reduction of 5.44%. 

Also Read: Closing Bells: Indian Benchmark Indices Closed Wednesday Nearly Flat

The price per gram of 22 carats gold touched its monthly peak at Rs 51,190 on the 9th of November. It was at its lowest on the 28th of November when it was at Rs 47,240. The price per gram of 24 carats gold opened November 2020 at Rs 50,960 and folded the month at Rs 48,240. Over the month, the price shrunk by Rs 2,720 or 5.34%. 

The price gram of 24 carats gold peaked on the 9th of November when it touched Rs 52,230. It was the most subdued on the 28th of November when it was at Rs 48,240. The buzz around the UK deciding to vaccinate its citizens with COVID-19 vaccine developed by Pfizer has sparked a ray of hope among traders. It is interesting to see as to how the global markets receive the latest developments.

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in

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