Rising inflationary trends should be conducive for buying gold implying that the investment demand for the yellow metal will likely increase in the coming months.

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The 20-year chart for gold shows that it has performed well in times of economic crisis. Gold has also given good returns in recent years. According to experts, gold has beaten inflation when you look at the last 10 to even 50 years horizon.

The yellow metal in 2021 is trading in the negative because of the strength in dollar, higher treasury yields and investment money pouring into equities and industrial commodities. However, with inflation concerns rising, gold seems to be getting its mojo back as it holds above $1,800/ounce.

According to banks, gold will hit $2,000/ounce by Q3 2021. In the special segment ‘Commodities Trade’, CNBC-TV18’s Manisha Gupta gets a detailed analysis of the trends in gold.

Watch the video for more.

(Edited by : Bivekananda Biswas)