"The dollar could weaken on the back of more stimulus and that could help gold prices rise once again. "The slower pace of revival of economic activities and labour market growth along with higher amounts of stimulus measures will continue to remain driving factors for gold prices," he added. In 2020, he said that gold prices in India got an additional support from rupee depreciation against the dollar during the year as spot rupee was down by around three per cent year-to-date. However, he said that given gold's socio-economic role, several factors are very supportive of a sharp resurgence in gold demand in the next few quarters. This festive season growth of investments indicates the increased awareness among Indian investors about US Gold ETFs as an alternative to direct investment in gold.

Source: Mint December 27, 2020 06:22 UTC