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Below is perspective on Sovereign Gold Bond Tranche 8 By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International

“ The price for the Sovereign Gold Bond tranche-8 has been fixed at 4791/gm. The Sovereign Gold Bond is an effective way of taking exposure to gold. There is storage cost, as the holding format is digital, plus the investor stands to gain a 2.5%/pa interest. The government has raised over Rs 31,000 cr of funds via the scheme. SGB is a favored route for the government to convert all gold investments into a digital mode, it will help keep the deficit under control, provide support to the currency.

After hitting a 9-month high earlier in the month, gold prices were trading in a narrow range for the past few sessions. The fears surrounding the new variant of virus has raised fresh concerns, leading to a softness in USD, pushing gold prices higher. But the improving economic scenario, inflation levels around the world, likely rate hikes to contain inflation is likely put pressure on gold.

Moving forward, the US Fed meeting in December, the likely guidance on rates, economic data, and movement of the dollar will guide prices of gold in the near to mid-term.”

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