Gold prices are falling continuously, its prices have fallen rapidly in both the international market and the domestic market. Since Donald Trump’s victory in the presidential elections in the United States, the dollar has been rising and its direct impact has been on the price of gold. Because of this, this week has proven to be the worst for gold in the last 3 years. Let us tell you how much money will you have to spend for 10 grams of 24 karat gold?
Gold became so cheap in a week
This week has turned out to be the worst for gold prices in 3 years. On Multi Commodity Exchange (MCX) last week, on Friday, November 8, the price of gold futures expiring on December 5 was Rs 77,272 per 10 grams, but on Friday, November 15, it fell to the level of Rs 73,946 per 10 grams. According to this, a huge drop of Rs 3,326 has been recorded in the price of gold in a week.
Gold also fell in the domestic market
Along with the Multi Commodity Exchange, a huge drop in the price of gold has also been observed in the domestic market. According to the Indian Bullion Jewelers Association (IBJA) website, the price of 10 grams of 24-carat gold fell to Rs 73,740 on November 14, which turned out to be the worst week in three years. While on November 8 it was Rs 77,382 per 10 grams, which means that here too gold has become cheaper by Rs 3,642 per 10 grams. However, on Friday, November 15, a slight increase was recorded. If we look at the prices of other types of quality gold in the domestic market, 22 carat gold was sold at Rs 71,970/10 grams, 20 carat gold at Rs 65,630/10 grams and 18 carat gold at Rs 59,730 /10 grams.
It should be noted that this gold price in the domestic market is without 3 percent GST and free of charge. The execution of charges varies and due to this changes are observed in the price of gold in various cities of the country. Let us tell you that this year there has been a huge fluctuation in gold prices. After customs duty on gold and silver was reduced in the first budget of Modi 3.0 (Union Budget 2024), they fell to the level of Rs 67,000, while from the following month gold prices increased up to to such a point that they reached a total level. -high time. Now it has fallen again.
Gold falls in the international market
Now let’s talk about the changes in gold prices in the international market, a slight drop in gold prices was seen on November 15 and with this it was the worst week for gold in the last three years. Spot gold was trading 0.1% lower at $2,562.61 an ounce, down more than 4% for the week. Apart from this, a 0.2% decline was also seen in US gold futures which settled at $2,567.10.
Big reasons why gold is getting cheap
The main reason for the decline in gold prices is the strength of the US dollar. Despite this, the spot price of gold saw a slight increase and reached $2,569.69 per ounce, marking a marginal gain of 0.1% after five consecutive sessions of declines. Let us tell you that after Donald Trump’s election victory, the US dollar continues to rise, so the demand for gold as a safe investment is decreasing. Investors are now looking for alternative options in light of the Fed’s rate cut and the strength of the dollar.
Speaking of other reasons, the inflation data in the United States and the indication of a possible pause by the US Federal Reserve to control inflation are helping to reduce the pressure on gold prices. Apart from this, there has been a sharp rise in the rates of cryptocurrencies such as Bitcoin and it has reached $93,000. In such a situation, it has attracted investors. Rahul Kalantri, vice president of commodities at Mehta Equities, says the weakness in gold rates could be due to growing investor interest in cryptocurrencies as well as the rise in the US dollar.
