Commodity experts say that despite the aggressive trade policy of the newly elected US President (who will take office in January), Donald Trump, the price of gold in major Indian cities has crossed the level of Rs 80,000. for 10 grams. Gold also appears to be recovering from the impact of the strong US dollar. According to PTI News, he also said that the precious metal is gaining strength due to rising geopolitical tension due to the war between Russia and Ukraine. The global market has surpassed the level of $2,700 per ounce.
Gold prices had fallen 8 percent
According to the news, gold prices fell by Rs 6,775 or 8.5 percent to Rs 73,000 per 10 grams on the Multi Commodity Exchange (MCX), as expectations of a restrictive trade policy by the United States rose after Donald Trump’s victory. Gold prices fell 8 percent after the US election results. Jatin Trivedi, VP Research, Commodities and Currency Analyst at LKP Securities, said the strong US Dollar Index, which rose from $101 to $107.5, put a lot of pressure on gold, while the pro-cryptocurrency stance of Trump during the campaign put investors on hold. Crore fund looking for higher returns.
That is why the pressure on gold increased.
However, experts also say that the US Federal Reserve’s (Fed) cautious attitude towards the official interest rate and the strength of the US dollar are creating adverse conditions for bullion. Trump’s promise to impose 10 percent tariffs on all U.S. imports limited the Federal Reserve’s ability to aggressively discount, putting further pressure on gold. Geopolitical tensions, coupled with new fears over nuclear risks in the ongoing conflict between Russia and Ukraine, fueled safe-haven demand, sending gold prices higher.
Gold regains lost ground
Analysts said gold has regained the lost ground and the bullish trend continues and the precious metal is likely to trade in the range of Rs 77,000 to Rs 78,300 on MCX. In spot markets, gold with 99.9 percent purity rose by Rs 1,100 to hit a two-week high of Rs 80,400 per 10 gram, while gold with 99.5 percent purity again hit 80,000 rupees per 10 grams, increasing by 1,100 rupees on Friday. . Meanwhile, gold contracts for December delivery rose by Rs 69, or 0.09 per cent, to close at Rs 77,685 per 10 gram in futures trade on MCX on Friday.
You will receive support during the wedding season.
Due to the current wedding season in India, there is interest in buying gold jewellery. Malabar Group Chairman MP Ahmed said the wedding season is important for our business, and bridal or wedding jewelery accounts for a major chunk of sales. During the ongoing wedding season this year, we are seeing good demand for bridal jewelery across all our stores in India. Analysts said market participants will also be awaiting US third-quarter GDP data, which will provide more direction for the yellow metal.
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