In Chennai, the price of gold crossed Rs. 1.20 lakh per sovereign on August 24.
In the international market, gold prices also crossed $3,600 per ounce on August 25.
After that, within the next three to four days, gold prices fell sharply.
Currently...
If you look at gold prices in Chennai today, it is being sold at Rs. 14,270 per gram and Rs. 1,14,160 per sovereign. In the international market, one ounce of gold traded at $4,470.20 yesterday.
What is happening?
The sudden drop in gold prices is not due to the Iran war or crude oil. When the Iran war began, whenever crude oil prices rose, gold prices fell.
But since last month, the gold price has not been following crude oil prices.
It could even be said that gold prices have taken the Iran war and crude oil prices as the “new normal.” To that extent, gold prices have begun to fluctuate based on other international developments.
As a result, the current decline in gold prices is not because crude oil prices have crossed $90 per barrel.
Announcement from the Federal Reserve Bank!
Generally, changes in gold prices move in line with the decisions of the Federal Reserve, the central bank of the United States.
If the Federal Reserve raises interest rates, gold prices will fall... if it cuts them, gold prices will rise.
The reason is that if you buy and hold gold, it does not earn much interest. So when the Federal Reserve raises interest rates, investors will shift their investments toward interest-bearing assets. As a result, the price of gold will fall.
In the opposite scenario, if interest rates are cut, investors will feel that they will not earn much interest and will shift their investments toward gold.
I am waiting!
The Federal Reserve meeting is scheduled to take place on the 15th and 16th of this month. An announcement regarding changes in interest rates will be made at this meeting.
In the U.S. employment report released last Friday (September 4), employment increased. If employment rises, people’s consumption will increase.
Accordingly, the chances of the Federal Reserve Bank raising its interest rate are very high. That is why the rise in gold prices has hit a slight “speed bump,” and it is waiting for the bank’s announcement.
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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