Gold saw a rise on 26 August. The price of gold crossed Rs 72,000 per 10 grams on commodity exchange MCX. The shine of gold has increased due to the weakness in the US dollar and the expectation of the Federal Reserve reducing the interest rate in September. On 23 August, Federal Reserve Chairman Jerome Powell confirmed the expectation of a reduction in interest rates next month. Due to this, the dollar fell to its lowest level in 13 months, while gold saw a rise.
The increasing tension in the Middle East is also affecting gold. This month gold reached a record high. This year gold is among those commodities whose prices have risen a lot. At the beginning of this year, the central banks of many countries also increased the purchase of gold. This had an impact on the prices of gold. On August 23, Powell said in the annual conference of the US central bank in Jackson Hole that the direction is clear.
He had said, “How much and when the interest rate will decrease will depend on the data that comes. The future outlook and the balance of risk will also play a role in this.” The prices of silver, platinum and palladium are also going strong. The price of spot gold remains above 2,500. Last week it reached $ 2,531 per ounce. This year gold has made investors happy.
Gold has given more than 20 percent return this year. American bank Goldman Sachs had said in its report in April that international prices of gold can go up to $2,700 per ounce. Gold’s shine increases when interest rates decrease. Gold is on a bullish trend due to the expectation of interest rate reduction. For the first time, its price has crossed $2,500.
Experts say that the festival season is about to start in India. This is increasing the shine of gold. The demand for gold has increased after the reduction in import duty. Ajay Chawla, CEO of the Jewelry Division at Titan, told Reuters that the demand for gold has increased after the reduction in import duty.