It has been observed that the gold rates have significantly decreased after the reduction of gold and silver customs duty in the budget of the central government.
The increase in gold prices due to the Fed signalling another cut in interest rates has now changed. Gold rates are rising due to five main reasons, creating growth opportunities.
The primary reason for the rise in gold rates is the uncertainty in the American economy. Gold is increasingly being seen as a safe investment due to factors such as the rise in jobless claim data to three-year highs in the US and developments in the Israel-Iran war. Experts suggest that this is a good time to invest in gold.
On the Multi Commodity Exchange, the October 2024 expiry opened at Rs 70,444 per 10 grams, reached an intraday high of Rs 70,511 but later dropped to a low of Rs 69,720 from the highs.
This indicates a significant decrease again. If the current fears of depression persist, it is expected that the gold rate will continue to rise in the coming days.
Experts in the multi-commodity market suggest that after the increase in interest rates by the Central Bank of Japan, uncertainty is prevalent in the international financial system.
Simultaneously, it is stated that there is a possibility of economic depression conditions such as an increase in the unemployment rate in America.
Additionally, situations like the Iran-Israel war and the US-China trade war have contributed to the decrease in gold rates. Consequently, investors are inclined to purchase gold near the minimum levels and make investments.
Meanwhile, the US dollar index has reached a 5-month low and is currently at the 102.50 mark. However, in the short term, the price of MCX gold is expected to reach Rs 72,000 per 10 grams.
It is predicted that the spot gold rate could reach $2500 per ounce in the international market in a few days. Currently, the price of spot gold in the international market is at $2420 per ounce.
Amid the current uncertainty and recession conditions, the demand for the US dollar and bond yields are expected to decrease. Consequently, gold is anticipated to become a safe investment tool, leading to an increase in investment and the gold rate.