Observers point out that a major rate cut is unlikely. There are indications that gold may shine as inflation rises. A section points out that political tensions in West Asia may favor gold.
The Federal Reserve is unlikely to cut interest rates. This may benefit gold. The US dollar index has fallen to the 104 level. Yields on US Treasury bonds also fell. The 10-year yield stands at 4.11 percent.
Government gold bond for gain
Now RB Sovereign Gold for Central Govt
Sovereign Gold Bond Series 2023-24 Series IV will open for subscription next week. The 2023-24 Gold Bond Series will be held for five days from February 12.
How to invest? Gold bond can be applied for through scheduled commercial banks. Applications can be made through banks other than small finance banks, payments banks and regional rural banks. Deposits can also be made through Stock Holding Corporation of India, Clearing Corporation of India and Post Office. Digital gold can be bought through BSE, NSE and ABI.
50 off on online purchase
Online application for Sovereign Gold Bond will get a discount of Rs 50 per gram. One can invest in digital gold starting from one gram. The maximum investment for individuals is four kilograms of gold. This is a scheme that helps the investors to make profit as the value of gold rises.
Unlike private gold investments, SGBs are low risk as they are backed by the Reserve Bank.
Government support also ensures the safety of digital gold compared to other market alternatives. But the gain from sovereign gold bond is subject to price fluctuations. Another major attraction is that you will get a guaranteed annual interest rate of 2.5 percent regardless of changes in the price of gold.