Now it has become a big question how much performance can be seen in the gold price in the month of June.
Although the stock market had seen a 3 per cent rally on Wednesday, June 5, during the Lok Sabha results on June 4, the stock market clearly indicated that it needs a stable government. It is clear that there may be instability in the stock market during the ‘Khichdi’ government. But today the question is not about the stock market. Rather, it is about gold prices. In recent days there has been a continuous drop in the price of gold.
Now the biggest question is whether the price of gold will change between the election results and the embattled government. However, experts say there is no visible effect of the change of government on gold prices. But during the instability of the stock market during the Khichdi government, the inclination of investors towards gold can be seen.
Anyway, after the last two Lok Sabha elections, gold investors have seen better returns in the month of June. Let’s take a look at the data and try to understand how the gold price situation may be in the coming days.
Gold may see a rise
If experts are to be believed, an increase in the price of gold is possible in the coming days. There are several main reasons for this. The most important reason is the possible reduction of interest rates by the Central Banks. The European Bank will announce interest rate cuts on Thursday. After that, the Federal Reserve could also see an interest rate cut. The effect of this can be seen in the dollar index.
Due to the fall of the dollar index, there may be an increase in the price of gold. According to Anuj Gupta, head of commodity currencies at HDFC Securities, interest cuts by central banks will be a major factor in gold prices. Before that, the decline in gold is a good sign for gold buyers.
The rise occurs after the elections
If we say that after the election results the price of gold will rise in the month of June, we do not say it in vain. There is also a very good story behind it. In the year 2014, when the new government was formed in May, a 3.40 percent increase in the price of gold was observed in the month of June. Gold prices remained stable in the month of July.
On the other hand, due to the elections and their results in 2019, there was an increase in the price of gold, but it was not as fast as in 2014. According to the data, in June 2019 the price of gold increased by 6 percent. In the month of July, prices increased more than 3.55 percent. In the month of August, prices increased by 9.56 percent.
Up for three consecutive months.
Gold prices have been rising for three consecutive months. According to the data, an increase of 8.17 percent in the price of gold was recorded in the month of March. Next month, in the month of April, a 4 percent increase in the price of gold was observed. In the month of May, an increase of 2 percent has been observed. The special thing is that in these three months the price of gold has increased an average of 10 percent.
Now the big question is whether the price of gold has increased in the current month of June. If there is also a rise in the price of gold in June, after about 4 years it will be seen that there has been a rally in the price of gold for four consecutive months. In 2020, there was an increase in the price of gold for 7 consecutive months.
current price of gold
If we talk about today, there is a drop in the price of gold on the Multi Commodity Exchange. According to the data, at 3:45 p.m. a drop of Rs 147 is observed in the price of gold, while the price has dropped to Rs 71,850 per ten grams. During the trading session, gold also touched the day’s lowest level of Rs 71,811. While today gold opened with Rs 72,077. A day ago, the price of gold was Rs 71,997. According to experts, we may see an increase in the price of gold in the coming months.
