54 kg of gold worth Rs 41 crore, Rs 10 crore in cash seized from abandoned vehicle in MP
The seizure was made in the wee hours of Friday on a tip-off.
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.
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“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.
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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.”
Rising crude oil prices putting further pressure on the Indian rupee is a positive factor for domestic gold prices. India is a major importer of crude oil.
“If oil prices sustain at current levels, it could fuel inflationary fire across global commodities and products. It will also inflate India’s import bill, putting further pressure on the Rupee, which is positive for domestic gold prices.”
Gold is widely considered to be the safest bet while hedging against volatility or inflationary risks.
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