No. of views : (6986)
The recent trend of falling gold prices the reasons!
Posted on: 19/May/2022 11:23:48 AM
As international investors have started investing in the US Dollar and with several nations coming out to sell the gold in their stock, the price of gold has tended to reduce!
The price of gold, as of 18th April, reached a peak of Rs. 5025/- per gram.
However, as the intensity of the Ukraine war came down, the gold price started decreasing from 19th April onwards.
In this regard, the president of the Erode district Gold, Silver, and Diamond Jewellery Traders Association, shared:
The price of fuels shot up due to the Ukraine war. Investments in stock were reduced leading to a drop in investments as well as prices of various commodities. As such, investment in gold increased globally leading to a rise in gold price!
In this scenario, the Federal Bank of America increased the interest rates and thus strengthened the dollar.
Further, as the intensity of the Ukraine war and the raging spread of the coronavirus pandemic reduced, the investment in gold started reducing.
International investors indulge in investing large amounts over short periods to earn more profit. As such, they reduced the investment in gold and increased the investments in other avenues. As the US Dollar appreciated, countries such as China and Korea have started selling gold stocks with them!
Because of this, the availability of gold and its stock increased the price of gold started reducing. As the US Dollar value appreciates further, the gold price will reduce further!
For more inquiries please contact:
