Commodity experts say that despite the aggressive trade policy of the newly elected President of America (will assume office in January) Donald Trump, the price of gold in major Indian cities has crossed the level of ₹ 80,000 per 10 grams. Gold also appears to be recovering from the impact of the strong US dollar. According to PTI news, he also said that the precious metal is gaining strength due to increasing geopolitical tension due to Russia-Ukraine war. It has crossed the level of $ 2,700 per ounce in the global market.
Gold prices had fallen by 8 percent
According to the news, gold prices fell by Rs 6,775 or 8.5 per cent to Rs 73,000 per 10 gram on the Multi Commodity Exchange (MCX) as expectations of restrictive trade policy by the US increased after Donald Trump’s victory. Gold prices fell by 8 percent after the US election results. Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said the strong US dollar index which rose from US$101 to US107.5 put a lot of pressure on gold, while Trump’s pro-cryptocurrency stance during the campaign put investors on hold. 200 crore fund in search of higher returns.
That’s why pressure on gold increased
However, experts also say that the cautious attitude of the US Federal Reserve (Fed) towards the policy interest rate and the strong US dollar are creating adverse conditions for bullion. Trump’s pledge to impose 10 percent tariffs on all US imports limited the Federal Reserve’s ability to aggressively discount, putting further pressure on gold. Geopolitical tensions coupled with new fears over nuclear risks in the ongoing Russia-Ukraine conflict boosted safe-haven demand, pushing gold prices higher.
Gold regains its lost ground
Analysts said gold has regained its lost ground and the bullish trend continues and the precious metal is likely to trade in the range of Rs 77,000-78,300 on MCX. In the spot markets, gold of 99.9 per cent purity rose by Rs 1,100 to hit a two-week high of Rs 80,400 per 10 grams, while gold of 99.5 per cent purity again touched Rs 80,000 per 10 gram, rising by Rs 1,100 on Friday. Meanwhile, gold contracts for December delivery rose by Rs 69, or 0.09 per cent, to close at Rs 77,685 per 10 gram in futures trade on MCX on Friday.
Will get support during wedding season
Due to the ongoing wedding season in India, there is interest in buying gold jewellery. Malabar Group Chairman M P Ahmed said the wedding season is important for our business, with bridal or wedding jewelery accounting for a significant share of sales. During the ongoing wedding season this year, we are seeing good demand for bridal jewelery across all our stores in India. Analysts said market participants will also be awaiting US third quarter GDP data, which will provide further direction for the yellow metal.
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