Gold Rate Today: The rising trend in gold prices continues. On Monday, gold rose by Rs 110 to Rs 80,660 per 10 grams in the national capital Delhi. Earlier on Friday it was Rs 80,550 per 10 grams. During the last five trading sessions, an increase of Rs 1,660 i.e. 2.1% has been recorded in the prices of gold. Let us know what are the reasons for this rise and what are the signs of the future?
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Big reasons for the rise in gold
Jatin Trivedi, Vice President (Commodity and Currency Research), LKP Securities, said, “The rise in gold prices has come due to the weakness of the rupee. The rupee reached 86.61 against the dollar, which is a result of rising crude oil prices. America Geo-political tensions have increased due to the new sanctions imposed on Russia, due to which the prices of crude oil have increased. This has also affected the prices of gold.On Monday, the rupee fell by 58 paise and closed at a historic low of 86.62. The strength of the dollar and high crude oil prices put pressure on the rupee, leading to a rise in gold prices.
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condition of international markets
In the international market, Comex Gold Futures is trading at $ 2,704.30 an ounce, down by $ 10.70 or 0.39%. However, due to international instability and geo-political tension, investors’ confidence in gold remains intact. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said, “Spot gold prices remain stable, which is being seen after a rise of 1.95% last week. Fears of rising inflation rate in America and international debt crisis have kept gold prices under pressure. The demand has strengthened.”
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Impact of American monetary policy
Dr. Renisha Chainani, Research Head, Augmont, said, “The US Non-Farm Payrolls (NFP) report remained strong, which has reduced the chances of the Federal Reserve cutting interest rates. The dollar index is at its highest in two years. level, which has put pressure on gold prices. However, international economic uncertainty and inflation concerns will maintain the demand for gold.”
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What are the future signs of gold?
Experts believe that due to the current geo-political situation, dollar strength and inflation, gold prices may continue to fluctuate. Jatin Trivedi of LKP Securities believes that “gold will remain in demand as a safe investment option amid volatility in the international market.” Reasons like weak rupee, high crude oil prices and global geo-political tension are responsible for the continuous rise in gold prices. According to experts, it is important to pay attention to these factors while taking decisions related to investment in gold. Gold prices are likely to continue fluctuating in the coming days.
