Gold prices fell to a three-month low on the world market. Rates fell as investors awaited monthly inflation data from the United States, which might influence the Federal Reserve’s monetary policy stance and demand for gold.
Spot gold stayed steady at $1,838.55 per ounce, having dropped to its lowest level since February 11 earlier in the day, as a relatively strong dollar made greenback-priced bullion less appealing to international buyers. According to Reuters, US gold futures fell 0.2 percent to $1,836.60.
INDIA’S GOLD PRICE
Gold futures were trading at Rs 50,648 on the Multi Commodity Exchange of India Limited (MCX).
According to goodreturns statistics, the 22-carat gold price on Wednesday was Rs 46,750 per 10 grams, while the 24-carat gold price was Rs 51,000 per 10 grams.
Please keep in mind that these rates do not include Goods and Services Tax (GST), and prices vary by state.
WHY IS THE GOLD RATE GOING DOWN?
According to Ilya Spivak, a currency strategist at DailyFX, gold is at a significant price support level of around $1,830, and if inflation is lower than predicted, prices may rebound, with investors prioritising the data’s influence on the Federal Reserve rather than bullion’s use as a hedge.
If inflation remains stable or even rises somewhat, which is the biggest danger, gold prices may fall through $1,800 to the next major challenge around $1,680, according to Spivak.
Gold is extremely sensitive to increasing short-term US interest rates, which increases the opportunity cost of keeping zero-yielding bullion.