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HomePersonal FinanceGold prices fell for the third consecutive week, should you buy now?

Gold prices fell for the third consecutive week, should you buy now?

Due to the strengthening of the dollar, the price of gold is showing pressure.

Gold Price Outlook: This is the third consecutive week when the price of gold is showing a decline. Due to inflation, the interest rate is rising, due to which the dollar is strengthening. At the same time, gold is also getting support for hedging.

Gold price due to strengthening of dollar (gold price today) the pressure has increased. This is the third consecutive week that a fall in the price of gold has been recorded. Gold for June delivery on MCX closed this week at Rs 51344 level. In the international market, gold closed at the level of $ 1882 per ounce. On the other hand, the dollar index is at a 20-year high. This week the dollar index is at 103.68. On Friday, it had also crossed the level of 104 during trading. This index shows the strength and weakness of the dollar against the world’s six major currencies.

According to the trend, when the dollar rises, there is a fall in the price of gold. When gold becomes expensive, the pressure on the dollar increases. When inflation rises, investors are attracted towards gold, due to which the price rises. At present both the things are happening simultaneously. Due to inflation, the interest rate is rising, due to which the dollar is strengthening. At the same time, gold is also getting support for hedging.

Gold is getting support due to rising inflation

In a report published in Mint, Sugandha Sachdev, Commodity Vice President, Religare Broking, said that the Federal Reserve announced an increase of 50 basis points in interest rates. On behalf of the Federal, it was said that an increase of 50-50 basis points is possible in the coming meetings of the FOMC. However, the possibilities of 75 basis points have been ruled out. Due to this, the sentiment regarding gold has suffered a little less. Gold is also getting support due to the rise in inflation. The Bank of England has raised its inflation forecast for this year from 5.75 per cent to 10 per cent. The severity of inflation can be gauged from this.

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