There is a drop in the price of gold.
Gold prices in India fall for the second day in a row. The special thing is that since the fall of Friday and Monday, gold has become cheaper by more than 2,200 rupees. According to experts, the price of gold will not increase in the coming days unless the Federal Reserve reduces interest rates. China is considered to be the real cause of the fall in gold price from New Delhi to New York. In fact, China has put a stop to the purchase of gold after 18 months. Due to which a drop in gold prices is being seen.
Earlier, due to the worsening global economic scenario, central banks around the world were busy increasing gold reserves. The Reserve Bank of India was also continually increasing its gold reserves. The effect of which was visible in gold prices. Spot gold prices in India had crossed Rs 75,000. Since the China decision was made, the price of gold has seen a drop of more than Rs 4,000 from its all-time high. Let us also tell you what has been the price of gold from Delhi to New York and what could be the reason for the rise in gold price in the coming days.
gold became cheaper
A huge drop in the price of gold was seen on the Commodity Exchange on Friday and Monday. According to the data, the price of gold has fallen by Rs 2,256 in these two days. On Thursday, the price of gold was Rs 73,131 per ten grams. Which dropped to the day’s lowest level of Rs 70,751. On Monday, gold was trading at Rs 70,880 per ten gram with a drop of Rs 473 at 12:40 pm. While on Monday, gold opened at Rs 71,149. On Friday, the price of gold was Rs 71,353 per ten grams.
How much have they reduced prices in Delhi?
According to Good Returns, the price of gold in Delhi, the country’s capital, has not changed for the second day in a row. After China’s statement on June 8, a large drop was observed in the prices of 22 and 24 carat gold. 24-carat gold became cheaper by Rs 208 and the price became Rs 71,820. While the price of 22 carat gold had dropped by Rs 190 and the price was Rs 65,850 per ten grams. Those prices have remained the same since then. However, since June 1, the price of gold has seen a drop of Rs 880 per ten grams.
How much return did gold give in the current year?
If we talk about the current year, gold investors have earned a return of 2.80 percent until June 7. On the last trading day of last year, the price of gold closed at Rs 69,413 per ten grams. Till June 7, an increase of Rs 1,940 has been observed in the price of gold. However, on May 20, the price of gold had reached Rs 74,777. Gold investors then earned a return of around 8 percent. From then until now, the price of gold has seen a drop of more than 5 percent. This means that the price of gold has become cheaper by more than 4 lakhs from the record level.
What were the prices in foreign markets?
On the other hand, there has also been a significant drop in the price of gold in foreign markets. According to the data, the future price of gold in the Comex market is trading at $2,307.30 per ounce with a drop of about $18 per ounce. At the same time, spot gold is trading at $2,292.00 per ounce down about $2. In European markets, the price of gold is increasing by more than 10 euros and the price has reached 2,131.96 euros per ounce. At the same time, in the British markets there is a drop of approximately 1 pound and the price stands at 1,802.32 pounds per ounce.
Eyes on the Federal Reserve
Now all eyes are on the Federal Reserve. If the US Federal Reserve cuts interest rates, the dollar index will fall and gold itself will become more expensive. Currently the dollar index has reached 105.38. The special thing is that in the last 5 days an increase of more than 1 percent has been observed in the dollar index. The current year has seen an increase of around 4 percent in the dollar index. Now the trigger for the rise in gold is the reduction in interest rates. If any big country makes a statement of not buying gold, then there may be a new drop in gold prices.
