Price is under pressure due to increase in interest rate.
Gold prices are showing an upward trend due to inflation and the possibility of recession, but due to unexpected increase in interest rate, bond yields are increasing. This puts pressure on the price of gold. Currently, it seems to be trading in a range.
Last week was very important for the commodity. US Federal Reserve (US Federal Reserves) increased the interest rate by 75 basis points above market estimates. Due to this there was chaos in the commodities. The Federal Reserve has raised the interest rate all at once, the highest since 1994. Due to this the price of gold (gold price today) registered a decline of 1.5 per cent. It is generally believed that when there is uncertainty in the economy or there is a surge in inflation, then the price of gold increases. However, the situation has reversed due to the increase in the interest rate.
Kedia Commodity (Kedia Commodity) director Ajay Kedia said that non-yield bullion has not been as attractive because of the steep hike in interest rates. The craze for gold has decreased due to increase in interest rate and strengthening of dollar. The effect visible due to inflation is getting weaker here. China is the world’s largest physical gold consumer. Demand remains sluggish due to restrictions imposed due to Corona. Apart from this, if the effect of inflation does not subside, then the Federal Reserve will increase the interest rate even further.
Gold will return due to fear of recession
Fed chief Jerome Powell has hinted at raising interest rates in July as well. However, in the midst of rising prospects of recession, if the Federal Reserve continues on an aggressive approach to control inflation, then once again the appetite of investors towards gold will increase and the price will rise.
Right now gold and silver will trade in the range
Ajay Kedia said that right now gold and silver will trade in a range. In the short term, gold will trade in the range of 50 thousand to 51500. A fall in the rupee also causes a rise in the price of gold. At the same time, spot gold in the international market will trade between $ 1820 to $ 1870. Regarding silver, he said that it is underperforming right now as the fall in base metals is showing an impact on the price of silver. Silver will now trade in the range of 59500 to 62500.
Source: www.tv9hindi.com
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