Gold: The 3 top outcomes of August 2020

Source :Sify
Author :Finance Desk
Last Updated: Fri, Sep 4th, 2020, 20:06:03hrs

August 2020 seems like an august month for Gold and Bullion. Pandemic struck India, the world's second biggest consumer of Gold after China, was busy getting shops and establishments to resume business. However, jewellers rued of tapering Consumer sentiment. From a consumer perspective, consumer price inflation was up by 6.93 percent and economic sentiments across rural and urban India were down.

In the US economy too a dip by was reported by analysts tracking jobs, government borrowing and printing of money. Analysts also rued of unattractive bonds and the anti-China rhetoric from US President Donald Trump. 

Gold took advantage of these economic and geopolitical cues to emerge with a 12 percent monthly gain. Here are three crucial outcomes for Gold from the month of August 2020. 


The price of Gold surpassed the magical mark, quoting $2,075 per ounce on August 6th. In July, Gold price stood at $1,850.

In India, The retail Gold rates hovered at Rs 56,000 per ten grams on 7th August 2020 according to data from Sify Gold.

Gold, in dollar terms, was up by 12 percent (spot) and in rupee terms was up by 10 percent. A comparison of average monthly retail rate says August-rates were up by 5.5 percent.


According to a World Gold Council report, inflows from gold backed ETFs for the month of August are estimated at $6 billion. Gold ETFs added 122 tons in August to form a collective ETF base of 2,733 tons of gold. This is still below the highest of 2,791 tons owned by ETFs during 2012.

3. Now, the Oracle also loves Gold:

In a twist of preference, the Oracle of Omaha, Warren Buffett, reported his portfolio - a million odd stocks of Gold. Buffett, who remained Gold's most powerful critic, seemed to have favored Gold by buying 21 million shares of gold mining firm Barrick Gold (reported as on Aug 14). This was an unexpected change in stance from Buffett who has always argued that Gold was an idle asset. It seems even the stock-loving Buffett is peeved of the massive borrowing and printing of money by authorities.

Cues from the first week of September and the end of August indicates the bull run may have tapered. But when it comes to Gold, the peaks and dips can be temporary.  

Disclaimer: Retail Gold Rates in 24 Karat and quotes are attributed by Sify Gold.