Due to higher than expected inflation data in the US in March 2024, the price of gold has declined and has come down from the upper levels. According to US government data, the inflation rate last month increased by 0.40 percent to 3.5 percent, which is higher than expected.
Gold prices fell at international level
Internationally, there has been a decline of 0.6 percent in the price of gold and it has stood at $ 2,338.19 per ounce. At the same time, America’s gold futures rate has decreased by 0.1 percent to $ 2,360 an ounce. Let us tell you, earlier in Tuesday’s trading session, there was a tremendous rise in gold and it reached Rs 2,365. The level of $09 per ounce was touched.
Relation between gold and inflation in America
There is a direct relation between gold and inflation in America. Whenever inflation decreases in America, the dollar weakens and bond yields also fall. For this reason people like to buy gold in large quantities for hedging. At the same time, when inflation increases, the dollar strengthens and bond yields rise and vice versa.
Gold prices at domestic level
In the country’s capital Delhi, the rate of 24 carat gold is running at Rs 72,000 per 10 grams. At the same time, the rate of silver has reached Rs 84,000 per kg. HSBC had recently said in its report on the price of gold that in 2024, the international price of gold could range between $ 1,875 to $ 2,500 per ounce. The reason for the rise in gold price from the bank’s side is the ongoing turmoil at the global level and the elections being held in major countries of the world this year, which has kept gold at higher levels. In view of the rise in gold prices, in the last trading session, Shanghai Futures had announced that trading limits have been imposed on gold contracts.
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