Gold prices became cheaper, know today’s latest rates
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The prices fell 1.45 per cent for the week tracking a stronger US dollar and interest rate hike fears in the US. Gold futures contracts for April 2023 on the Multi Commodity Exchange (MCX) ended lower by Rs 3,431 at Rs 55,416 per 10 grams, down from an all-time high of Rs 58,847 per 10 grams.
In the international market, gold prices posted a weekly loss of 1.68 per cent. Gold slipped from $1,841 to $1,809 an ounce in the last one week. On the other hand, the US Dollar continued its rally in the week. It climbed to the 105 level and was at 105.19 at the time of market closing on Friday.
Impact of global circumstances
According to commodity market experts, the previous support in gold price was taken near $1,820 levels. Now, an immediate support in the international spot market lies in the $1,785-$1,780 range. The dollar index is an important factor, but gold prices are also falling because high lending costs by the US central bank have increased the cost of bullion investments.
The Russia-Ukraine war, Turkey earthquake and the resulting geopolitical tensions will remain on the radar of investors and may affect gold prices.
Asked why gold prices are falling globally, Sanjay Asthana of Enrich Investments says the precious metal declined last week as Fed meeting minutes indicated continuation of monetary policy tightening. Minutes of the Fed’s February meeting show that a majority of its monetary policy committee members are in favor of raising interest rates this year as inflation shows little improvement.
Sanjay explains that gold is such an investment on which you do not get any interest. Its profit is the return it gets from the increase in price. Any economic upheaval in countries like America has an impact on the international rate of gold. Core inflation in the US accelerated to 0.6 per cent, leading to a rise in the dollar index. Investors are giving priority to save dollars.
Where will gold prices go
Sanjay Asthana says gold prices are witnessing a corrective rally but further downside may continue. In the international market, the prices broke the important support near $1,820 an ounce. They can take new support till $1785-1780 per ounce. Talking about the rupee, in the next week, the support of gold is up to 54,500 per 10 gram level and the resistance is up to 56,000.