Gold Prices Today:There is a continuous decline in gold prices, due to which there is increased concern among investors and buyers. On Thursday, the price of 10 grams of gold in Delhi fell by Rs 700 to Rs 77,050. In such a situation, it is important to know what are the reasons behind this decline and what could be the further signs. We will also know what the experts believe about this and what strategy should those who want to invest in gold adopt in the current environment.
Main reasons for fall in gold
1. Strength in US dollar
One of the main reasons for the fall in gold prices is the strength of the US dollar. Due to the increase in the American currency in the international market, the demand for gold has decreased, which has put pressure on the price of gold. According to Saumil Gandhi, Senior Analyst, HDFC Securities, “Gold continued to fall during Thursday’s European session, taking it to its lowest level since September 19. The strength of the US dollar is putting pressure on gold prices. “
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2. US inflation figures
The rise in inflation rate (CPI) in America is also affecting the prices of gold. According to recently released data, CPI inflation in America has been 2.6%, which is higher than the estimate of 2.4%. Jatin Trivedi, VP Research Analyst, LKP Securities, said, “The US Fed had continued to cut interest rates as inflation approached, but the uptick in CPI data has raised concerns, putting a halt to further cuts.” Can.”
3. Possible policy changes of the Federal Reserve
The possibility of the US Federal Reserve stopping the process of cutting interest rates has had a negative impact on gold prices. Since gold is considered a safe investment, its demand often increases when interest rates fall, but if interest rates remain high then the demand for gold decreases.
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Impact on MCX futures
A big fall in the price of gold has also been recorded on the Multi Commodity Exchange (MCX). For December delivery, the price of gold on MCX was trading at Rs 73,678 per 10 grams, down by Rs 804. During this period, gold fell by 1.59 percent and reached Rs 73,300.
Big fall in silver prices too
On Thursday, not only gold but also silver prices saw a big fall. The price of silver decreased by Rs 2,310 to Rs 90,190 per kg. According to Saumil Gandhi of HDFC Securities, the ongoing rise in the US dollar and buying of dollars by investors has also affected silver prices.
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What are the signs of the future?
Experts believe that gold prices may continue to remain volatile in the near future. According to Pranav Mer, Vice President, JM Financial Services, “Producer Price Index (PPI), weekly unemployment data and retail sales data released in the US can have a significant impact on gold prices. Along with this, Chairman of the US Federal Reserve “Statements from Jerome Powell and other central bank officials may also give direction to gold prices.”
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What to do to invest in gold?
The recent fall in gold has left investors in confusion. However, this could be a good opportunity for long term investors because according to experts, the strength of the dollar and changes in the US economy can bring stability in the price of gold in the coming times. If you are thinking of long term investment, then you can see these falling prices as an opportunity, but it is necessary to be cautious in the short term.The recent fall in gold prices is due to the strength of the US dollar, US inflation rate and possible changes in the policy of the Federal Reserve. According to experts, economic indicators from the global market will also have to be monitored in the coming few weeks. The advice for gold investors is to be cautious in the short term and invest in a planned manner keeping in mind the long term investment.
