The price of gold, which was so high till recently, is now coming down to the ground. This is good news for those who want to buy Veisamethu gold during the festival. But these golden days are going to last for many days, market experts warn. With the effect of Fed interest rates, there is a risk that bullion prices will fall again. And if you think about it, is it hopeless? What does the Fed have to do with gold?
The prices of gold, which have been falling until recently, are coming down now. For the third day in a row, gold rates saw a decline. Currently, the price of 10 grams of gold in Hyderabad market is 6,825 rupees. But this relief is only for a few days, experts say.
The Fed has cut interest rates by 50 basis points. The American Fed Reserve has reduced the interest rates, ending the debate that has been going on in the world market for the past few months. The Fed, which has currently cut rates by 50 basis points, is likely to cut another 50 basis points by the end of this year. The decision was taken by the Fed Reserve to boost the declining US economy and curb unemployment. This is the first rate cut by the Fed in four years. This is the first reduction in interest rates even after the Covid crisis. Fed Reserve Chairman Jerome Powell has signaled that interest rates will be further reduced in the coming reviews to boost the country’s economic growth and the job market.
More countries’ central banks are following the path of the Fed Reserve. With US elections in two months, the decision to cut interest rates has become crucial. It has an impact on every sector from consumers who take loans from banks to traders. Economic analysts believe that the central banks of more countries may lower interest rates on the path of the Fed Reserve. With the Fed Reserve reducing the interest rates, investors have focused on raw investments. Due to this, the international gold prices got wings. In the international market, the price of an ounce of gold rose by 22 dollars to reach 2,600 dollars. Due to this effect, it is expected that the price of gold will increase in the domestic market as well.
Imports rose to $10.06 billion this August. Gold is not just a metal for Indians; it’s a sentiment. It is the common sentiment of 140 crore Indians that Pisaranta should stay at home. As a result, the demand for gold has increased and there has been no decrease. On the other hand, the central government has reduced the customs duty on gold from 15 percent to 6 percent in the recent budget. And with the demand of the festival season, gold imports into the country have increased massively. Imports have doubled in the month of August compared to last year. In August last year, India imported gold worth 4.83 billion dollars, but this year it has increased to 10.06 billion dollars, the government announced. With festivals like Dussehra and Diwali coming next month, the demand for gold is likely to increase in the coming days, traders say.
There is demand but there is no production. Although there is a huge demand for gold in our country, we do not have that level of production. This is based on international imports. India stands next to China among the countries that import the most gold in the world. Gold alone accounts for 5 percent of India’s total imports. Due to the increasing geographical and political tensions in Central Asia and the US Fed’s stance on interest rates, gold prices are increasing in the international market. That effect is likely to touch the Indian market as well. Due to this, brass lovers are showing interest in buying greens.
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