At the end of last February, since the Iran war began, crude oil became the 'hero' and gold started to 'fade'. This is in terms of price.
Even though the Iran war is still in an 'on... off... on... off' mode, gold prices have now returned to the limelight.
In a single day, gold prices in Chennai have risen by Rs. 300 per gram and Rs. 2,400 per sovereign. Today, the price of gold in Chennai is Rs. 14,250 per gram and Rs. 1,14,000 per sovereign.
In the international market, gold prices have now touched nearly $4,390 per ounce.
At a time when the war was at its peak, gold, which had touched $3,900 per ounce, is now on an upward trend.
This price rise is something investors must certainly pay attention to.
Why this rise?
The meeting of the U.S. central bank, the Federal Reserve, is scheduled to take place next September. It was expected that interest rates would be increased at that meeting.
However, the current U.S. labor market is not strong enough to justify raising interest rates. As a result, it is said that the decision to raise interest rates may be postponed to the following months. Therefore, investors have turned their attention to gold.
The dollar is not currently very strong. This is also pushing up the price of gold.
It was thought that inflation would be higher because of the Iran war. But there has been no major change in inflation. This is also one reason for the upward trend in gold prices.
Most importantly, central banks around the world continue to buy and stockpile gold. According to data from the World Gold Council, central banks bought 51 tons of gold in the past June.
Should gold be bought now?
In the current market, it is better to trade rather than make large-scale investments in gold. Those investing through the SIP method can continue their investments.
Data in this section is not a buy/sell recommendation but only a compilation of information on various technical/volume-based parameters
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