Gold is getting cheaper by ten thousand rupees from record high. Gold has become cheaper by Rs 2 thousand only in the last two days. In fact, due to the strengthening of the dollar and signs of a spectacular recovery in the economy, there has been pressure on gold. So is this the right time to buy gold, or can the price go down further during the festival. This is what we are discussing here.
Talking about investment opportunities in gold, gold has slipped to a low of 5 weeks. Its price on Comex has reached the level of $ 1760. Gold price on MCX is at Rs 46,000 level. Gold has seen a fall of about 3% in a day. The strengthening of the dollar has put pressure on gold. Strong US data also added to the pressure. US retail sales figures have been better than expected. There has been a recovery in industry production in the US. The market is eyeing the FOMC meeting next week. The price of gold has come down about 20% from the record high. On 7 August 2020, it made a record high of Rs 56191. Gold has become cheaper by Rs 10,000 in 1 year.
Talking about the return on gold, MCX Gold has given -1 percent in 1 week, -2 percent in 1 month, -2 percent in 3 months, -8 percent so far this year. Taking a longer view, it has given -11 per cent in one year and +51 per cent in 3 years.
Talking about the returns from silver, MCX Silver has given -3 percent in 1 week, -1 percent in 1 month, -9 percent in 3 months, -10 percent so far this year. Taking a longer view, it has given -11 per cent in one year and +65 per cent in 3 years.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities Said that the fall in gold prices is being recorded due to the strengthening of the rupee against the dollar. At the same time, there is a bullish trend in the Indian stock markets as well. Due to this, gold prices are going under pressure.
Many commodity experts say that further pressure can be seen on gold in the next few months. Debajit Shah of LSEG Business Says that any sudden rise in prices will not indicate that the pressure on gold has been removed. There is a huge possibility that gold prices may slip to $ 1,605 an ounce in the next few months.
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