Gold Price Decline: Due to this reason gold became cheaper, know the real reason
Gold Prices Falling Reason: A continuous rise in gold prices has been seen in the beginning of the month of April. It was going very well for investors but now by the end of this month, gold prices are falling again. That means these days the price of gold is falling. Gold is very useful to investors in case of emergency. In such a situation, do you know what could be the reason behind the falling price of gold?
Digital Desk: Gold Prices Falling - Gold prices keep fluctuating. This is not a big deal for the common people who make occasional purchases, but it is becoming a matter of concern for those who regularly invest in gold. In Delhi's bullion market, gold had managed to create a record of Rs 71,990 per 10 grams, which is its all-time high. But from Tuesday, April 23, gold prices started falling.
Investors booked profits in gold last week ahead of key US economic data as fears of escalating tensions in the Middle East diminished. According to news agency Reuters, spot gold fell 0.3 percent to $ 2,318.90 an ounce, which was the lowest level since April 5. On April 12, the bullion market's rally from March to April had increased it by almost $ 400 at the global level to an all-time high of $ 2,431.29.
Know why the decline in gold prices started?
Israeli attacks on Gaza intensified in the heaviest shelling in weeks, but came after Iran last week said it had no plans to retaliate following a widespread Israeli drone strike. Because of which there were talks of ending the conflict.
Signals coming from US are being closely monitored
According to sources, this means that gold, which has traditionally been seen as a means of avoiding risk, has lost its ground. The market is also closely monitoring signals from the US, where inflation data and statements from the US Federal Reserve indicate that interest rates may not be cut in June.
There may be a cut in interest rates in the month of September
Recent comments from US Fed officials indicate there is no rush to cut rates, reducing the appeal of bullion with interest-free payments. Traders now expect the Fed's first rate cut to take place possibly in September.
The market will keep an eye on US GDP data due on Thursday and personal consumption expenditure (PCE) print on Friday for more clues about the health of the economy and timing of cuts.
USD at 34-year high against Yen
Gold and silver prices fell after the US dollar hit a 34-year high against the Japanese yen, while the dollar index remained steady at a five-month high.
Notably, gold recorded its biggest one-day decline in gold price since February 2021, slipping below $2340 per troy ounce, while silver prices fell below $27.30 per troy ounce after a recent strong rally. Fell down.