Gold will be costlier if the rupee weakens.
Due to the strengthening of the dollar, there is pressure on the price of gold in the international market. In contrast, gold is shining in the domestic market due to the imposition of import duty of 5 percent and the rupee reaching a record low.
5% off on gold import duty ,Import duty on Gold) After its installation, its price is seen increasing. Gold and silver prices on the first day of the week on MCX in the domestic market (gold price today) is seen to rise. Today gold has crossed 52 thousand and silver has crossed the level of 58300. Gold is seen as a hedging against inflation. However, when the dollar strengthens, the pressure on its price increases. At present, inflation is also at its peak and due to the increase in the interest rate by the Federal Reserve, the dollar is also getting stronger. In such a situation, both the factors are showing effect. When there is some news about the recession, then the price of gold jumps again.
- Ajay Kedia, Director, Kedia Commodities (Gold Price Outlook)Ajay Kedia) said that there is a meeting of Fed Minutes this week. In this you will get information about economy and interest rate. The Federal Reserve has made it clear that the interest rate will be increased in the coming times as well. In the June meeting, the interest rate was increased by 75 basis points. An increase in interest rates will strengthen the dollar. As long as the interest rate continues to rise, gold will remain under pressure.
- Ajay Kedia said that if a decline in growth is predicted, then it will indicate a slowdown and in such a situation, investor interest in gold will increase again. In such a situation, the volatility in gold will continue.
- Anuj Gupta of IIFL Security said that due to the fall in rupee against the dollar, the import bill will be costlier and the current account deficit will increase. High inflation and high current account deficit will create further pressure on the rupee, due to which the price of gold will increase in the domestic market.
- Crude oil is very important in dollar outflow. If crude oil rises, India, which imports 85 percent, will have to spend more dollar reserves for crude oil imports, which will increase the pressure on the rupee. In such a situation, the price of commodity and crude will have a direct effect on the price of gold and the rupee.
- Recently, the government announced a tax on petroleum exports. Revenue Secretary Tarun Bajaj has made it clear that windfall tax will not be withdrawn until crude oil becomes $40 cheaper than the current level.