There is relief news for gold investors. The market is seeing some renewed buying momentum as the Federal Reserve indicated it is on track to lower interest rates three times this year. After this signal from the Federal Reserve, the price of gold increased. Gold futures contracts on the Multi Commodity Exchange (MCX) for April 2024 expiry opened at Rs 66,100 per 10 grams. According to the news, within minutes of the commodity market opening on Thursday, it touched an all-time high of Rs 66,778 per 10 grams.
Good sign for gold traders
US Fed Chairman Jerome Powell stressed that officials would like to see more evidence that prices are coming down, but in most people’s view it is still possible that we will regain that confidence and lower rates. There will be cuts. According to the news, experts say that this signal from the Federal Reserve was actually a green signal for gold traders to come back. The Fed has said that they are tolerant of inflation for now. Spot gold rose 0.7% to $2,201.94 an ounce by 9:40 a.m. in Singapore on March 21. The Bloomberg Dollar Spot Index lost 0.2%, while silver, platinum and palladium were all higher.
Why are gold prices increasing?
Gold prices recently reached a new all-time high, and there is still room for more upside as some countries continue to buy gold. Strong physical demand for gold has also been driven by its appeal as a safe-haven asset and investors looking to diversify amid weak performance in other asset categories. Gold prices have risen since mid-February on rising geopolitical risks and long-held support, including buying by central banks led by China.
Gold is important in India
According to CNBC news, gold has always been a valuable gift. This is important in India. It’s actually a big part of the wedding season. The WGC said that while India’s jewelery demand should remain significant, more expensive gold could offset some of that spending. India’s gold jewelery consumption demand is down 6% to 562.3 tonnes in 2023 from a year earlier. India’s investment in gold bars and coins increased 7% year on year. The country’s central bank’s demand for gold also remains strong, with the Reserve Bank of India buying 8.7 tonnes of gold in January, which is the highest monthly purchase since July 2022.
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