/financial-express-hindi/media/media_files/VHeich93VdoLhln0FCuo.jpg?w=750&resize=750,375&ssl=1 "Gold prices crash: Gold fell by Rs 2000 in three days, what is the reason for this sharp fall?")
Why Gold prices crashed 2000 rupees in just three days:There is a sharp decline in gold prices in the Indian market these days. In the last three days, gold prices have decreased by about Rs 2000 per ten grams. A decline of Rs 700 per 10 grams has been seen only today i.e. Thursday, after which the price of gold in Delhi has come down to Rs 72,400 per 10 grams. After all, what is the major reason for this decline? What happened suddenly that the price of gold fell so rapidly?
What is the main reason for this decline?
In fact, the US Federal Reserve meeting held this month is being held mainly responsible for this fall in gold prices. Although the US Fed meeting was held from April 30 to May 1, the details of the discussions held in it, i.e. the minutes of the meeting, have come to light recently. According to this action, concern was expressed in the meeting that even though the inflation rate may have moderated somewhat in the last one year, it is still far from the target of 2 percent and the trend of inflation is much higher than the previous estimates. Looks stubborn. Not only this, many people attending the meeting also indicated that they are ready to adopt a more stringent stance in monetary policy to control inflation if necessary. The release of these minutes of the US Fed meeting has disappointed those market players who were expecting a cut in interest rates.
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US Fed dashed market expectations: Expert
Jatin Trivedi, Vice President and Research Analyst (Commodity and Currency), LKP Securities, says that this fall in gold prices by Rs 700 in one day and Rs 2000 per 10 grams in three days is mainly due to the minutes of the Federal Reserve meeting. It is the result of coming. According to him, these minutes show that the US Fed is in no hurry to cut interest rates, because the inflation level is still far from the target zone of 2 percent. He believes that due to the release of the minutes of the US Fed meeting, the dollar index became stronger and profit booking in gold started. Whereas earlier, due to expectations of cut in interest rates and geo-political tension, there was a rally in gold and its price reached Rs 74,000 per ten grams. But the minutes of the US Fed meeting have dashed all these hopes. Apart from this, the effect of reduction in geopolitical tension has also been reflected in the fall in gold prices.
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What are the signals in the futures market?
The current trends in the gold futures market are also indicating a decline. On Thursday, the price of gold in the domestic futures market fell by more than Rs 730. This decline is being seen due to reduction in positions by speculators. The rate of gold contract for June delivery on MCX fell by Rs 731 to Rs 72,315 per ten grams. While the business turnover was 7,956 lots. According to experts, weak signals from the international market are the major reason for this decline in the price of gold in the futures market. Talking about the international market, the price of gold in New York fell by 1.19 percent to $ 2,387 per ounce.
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