Information and Economic turbulence during

Covid19Pandemic with special reference to Gold Price

A presentation for

Colloquium on Information Flux & its impact on Societal

Resilience: A cause of Conflict or Concord
22nd-23rd August, 2020

Author: Presented By:

Ms. Kavita Singh,
Ms. Seema Shukla
Assistant Professor, SRMU
Ms. Seema Shukla
Assistant Professor, SRMU
 INDEX

✓ Introduction
✓ Purpose of Study
✓ Methodology
✓ Finding
✓ Conclusion

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 1 INTRODUCTION

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 Introduction

▪The spread of novel Corona Virus has drastically affected the economies
of countries all over the world as most of the companies are operating at
Break-even level or at low profit.
▪But very few segments were able to sustain successfully in the market
especially Commodities belonging to necessary segment like Fast Moving
Consumer Goods(FMCG) products, Pharmaceuticals and Information and
communication technology but it was a surprise to see the demonstrated
steep rise in the prices of precious metals like Gold (non-essential
commodity) in this pandemic era making the record highs in the prices.

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 2
PURPOSE OF
STUDY

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 Purpose of Study

One of the significant reasons supporting this variation is the Demand

and Supply mismatch and shutdown recessionary phase, accompanied
by various market speculation, confusion, tension in the minds of the
general public and investors. But still in this scenario of shutdown, one
group of commodity markets has demonstrated a steep rise in price
which is known as „“Precious metals” especially Gold and Silver. Gold
(Yellow metal) and silver (White metal) are always selected as “ safe
haven” at the time of uncertainty and crisis in the world.
Therefore, the agenda is to discover the area to invest at the time of
epidemic world wide.

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 3 METHODOLOGY

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 Methodology

This research study aims to identify, investigate and disclose the factors
causing rise in the prices of Gold during the Covid19 pandemic era . In
this study, we have presented that how and to what extent the various
market factors led tothe determination of gold price, where Price is a
dependent variable and factors affecting and determining prices like
US dollar(currency fluctuations and exchange rate), Demand(safe
heaven and hedge) and Supply(mining production) for gold, Inflation
and Recessionary phase in the economy are the Independent variables.

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 4 FINDING

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 Finding

▪ The empirical examination showed that major factors contributing to upward

rise in gold prices is the demand for Gold as in this scenario there is fear and
downturn in the economy and people find gold as the safest and trustworthy
way for allocating their savings. Also when economy is facing devaluation in
their currency (fall in purchasing power) there is general market perception
made in the present scenario and information flow about uncertainty ,recession,
devaluation, risk mitigation aspects has given lift to high market speculation
about worsening of economic conditions adding to further rise in the prices of
gold (like the US economy has sorted to purchasing and holding more gold
during this time) and emphasizes upon the relevance of gold investment (adds
wealth and safe heaven)

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 5 CONCLUSION

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 Conclusion

▪ The study concludes that the people will continue investing in gold and it
will record to make new highs and proves as it is the safe heaven buying
option in this recessionary and devastating period where investors may
consider gold as a viable substitute for part of their bond exposure , risk
mitigation and hedging at the time of uncertainty in the economy.

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 THANKS!

Any questions?

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