Investment in Gold: After reaching all-time high, a decline in gold prices (Gold Price Today) has been seen in the last few days. On April 16, the future price of gold on MCX exchange had reached close to Rs 74,000 per 10 grams. This was the all-time high level of gold. Since then, gold has fallen to Rs 71,000 per 10 grams. There has also been a significant decline in the prices of silver. On April 18, the price of silver on MCX was Rs 84,000 per kg. This price has fallen to Rs 80,000 per kg. In such a situation, the question in the minds of investors is whether this is the right time to invest in gold?
Why is gold falling?
Gold prices fell due to reduced demand amid easing tensions in the Middle East and signs that the US Federal Reserve will keep policy rates high for a longer period. Businessmen have also transferred their investments from assets considered safe to risky assets. This has led to profit-booking in precious metals after the recent rally. Ajay Kedia of Kedia Advisory said that on Monday, the biggest fall in MCX Gold in three years was recorded. It had fallen by 2.21 percent. Israel’s restrained response to Iran’s missile and drone attacks immediately reduced geopolitical tensions. This increased the sale of gold. Apart from this, the output in gold mines is also huge. At the same time, due to continuous economic pressures in the global economy, inflation may go up, this will affect the price of gold. Kedia said that now only any fresh increase in Iran-Israel tension can support gold prices.
Will prices go down further?
Ajay Kedia said that there will be a further decline in the prices of gold, due to which the price may come between Rs 67,500 to Rs 68,000 per 10 grams. Kedia said that after this the new rally will take the gold prices beyond Rs 75,000 per 10 grams. On the other hand, Jatin Trivedi, Vice President (Research Analyst) of Commodity and Currency at LKP Securities, said that in the coming days, gold prices in MCX may get support around Rs 70,000. However, if prices fall below this level, there could be another selloff towards Rs 68,500. The reason for this is the weakening of risk perception in West Asia.
Latest rate of gold and silver
On Thursday, gold for delivery on June 5 was seen trading at Rs 71,200 per 10 grams with an increase of 0.21 per cent or Rs 150 on MCX exchange. At the same time, silver for delivery on July 5 was seen trading at Rs 82598 per kg with an increase of 0.44 percent or Rs 364.
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