There has been a continuous decline in the price of gold so far this year. Due to this, the price of gold has fallen by six percent. With January 2021, gold has been the worst start in the last 30 years. According to a Bloomberg report, gold started its worst in 1991. After this, gold has started its worst in 2021. Investors have suffered losses so far this year.
Gold falling for four reasons
1. Investor trend in Bitcoin increased
Cryptocurrency Bitcoin has given tremendous returns to investors. In the year 2020, the price of bitcoin was recorded to be 5 times higher than in 2019. So far this year, the price of bitcoin has risen by 79%. Bitcoin price has crossed the new level of $ 51,431. The trend of investors has shifted from gold to bitcoin.
2. Increased demand for silver
Industrial activities have rapidly returned to track after overcoming the corona infection. This has led to a rapid increase in demand for silver. There is a decline in gold. Investors are getting higher returns in silver than gold. Therefore, investors are investing in silver instead of gold.
3. Great Return in Dollar and US Yield
Investors in the dollar and US yields have received huge returns amidst the Corona crisis. Along with this, the risk is also less. In view of this, investors are once again withdrawing money from gold and putting it in dollars, which dominates the selling.
4. Stock market continues to boom
After the Corona crisis, there was a big fall in the stock market. After that, investors turned to gold for safe investment. However, the stock market has continued to boom for the last nine months. With this, investors are once again putting money in the market and withdrawing from gold. So gold is falling apart.
Gold became cheaper by Rs 11,000 from the highest level
If we look at the prices of gold, gold has fallen below its highest level by Rs 11,000. On August 7, gold reached its highest level of Rs 56200 per 10 grams, after which there is a situation of decline in the price of gold. Gold fell to below 46,000 on Sunday in the Delhi Sarafa Bazar. At the same time, gold was sold by Rs 860 cheaper and silver by Rs 50 on APCX last week.