Rupee, inflation, stocks: What sets gold prices in India during Covid-19

The country's favourite investment is influenced by a range of economic factors.

Gold is India's most popular investment option and the country is one of the largest consumers of the metal, contributing around 25 per cent of the global demand.

Gold is regarded a safe investment, especially during economic and financial crises. Investors use gold as an instrument to shield their portfolio investment. Gold prices fluctuate in financial and political uncertainties as well as changes in interest and exchange rates, government policies and other reasons.

The coronavirus pandemic upended the gold market in 2020. The temporary closure of refineries and mines affected supplies, while social distancing, curfews and lockdowns measures hurt demand. Demand returned