Gold and silver prices in India fell on Thursday due to fall in international prices. On MCX, gold futures fell by 0.25 per cent to Rs 49,321.
Gold and silver prices in India fell on Thursday due to fall in international prices.
Gold and silver prices in India fell on Thursday due to fall in international prices. On MCX, gold futures fell by 0.25 per cent to Rs 49,321. It is nearing its seven-month low. Whereas, silver is down 0.4 per cent at Rs 57,059 per kg. In the global market, the spot price of gold has declined by one per cent to $ 1,656.97 an ounce.
US Federal Reserve reduced interest rates
The US Federal Reserve has increased the policy rate by 75 basis points overnight and it has also shown signs of further increase. Apart from this, the strong dollar has also affected. US Treasury two-year yields, which closely track Fed rates, have also jumped four per cent to their highest level since 2007.
The dollar index has also risen to its highest level in two decades, making the metal more expensive for buyers holding other currencies.
Let us tell you that in recent times, the trick of sleeping has taken everyone by surprise. Despite the rising inflation in the world, the prices of gold are not rising. Traditionally, gold prices rise when inflation rises. This compensates for the loss due to inflation. But this time this trend is completely absent.
Why is gold not benefiting from rising inflation this time? The reason for this is the strengthening of the dollar. With inflation reaching 8.5 percent in the US, the US Federal Reserve is continuously increasing interest and the possibility of increasing interest rates again next week is getting stronger. Due to this the dollar index is getting stronger. Dollar Index shows the performance of other currencies against the dollar. Recently, the dollar index has crossed the level of 110, which is a new record in itself. This is the highest level of the dollar index since June 2002.