Tuesday, November 5, 2024
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Gold Prices Surge on US Fed Rate Cut Speculation and Global Uncertainties

  • Gold prices rose this week due to expectations of a US Fed rate cut.
  • Factors like global economic concerns and geopolitical tensions fueled the demand for gold.
  • Despite possible short-term fluctuations, the overall outlook for gold remains positive.

Gold prices kept going up this week because people thought the US Fed might cut interest rates.

Jerome Powell, who’s the head of the US Fed, spoke to the US Congress, and after that, gold prices hit a new high.

On the Multi Commodity Exchange (MCX), the price for 10 grams of gold was ₹66,019, which is ₹2,419 more than last week.

In the international market, the price for an ounce of gold was $2,179, which is 4.65% higher than last Friday.

Experts say the reason gold prices are going up is because of worries about the world economy and tensions between countries.

Sugandha Sachdeva, who runs SS WealthStreet, thinks there are lots of reasons why people want to buy gold.

She says worries about the world economy, tensions between countries, and the possibility of the US Fed cutting interest rates are all pushing up the demand for gold.

Anuj Gupta from HDFC Securities says the US Fed cutting interest rates could make the US dollar weaker.

That’s because when interest rates go down, it’s not as profitable to invest in dollars.

Sugandha Sachdeva thinks the increase in gold prices might slow down soon. She says a strong US jobs report for February might make the US Fed think twice about cutting interest rates.

But even though the US economy seems strong, there were fewer jobs added in January and December, which shows things might not be as good as they seem.

Lower interest rates usually mean higher gold prices because it’s cheaper to hold onto gold instead of putting money in the bank.

Sugandha Sachdeva thinks gold prices might dip a bit soon, but overall, they’ll keep going up. She says people should take advantage of any drops in prices to buy more gold.

She also says people will be watching to see how US inflation changes. This could give clues about what the US Fed might do next, which could affect gold prices.

Overall, even though gold prices might go up and down in the short term, the reasons people want to buy gold are still there, so gold prices should stay high.

Deepak Arya
Deepak Aryahttps://santabanta.co.in/author/admin/
Deepak Arya is an accomplished news writer and reporter with a passion for delivering timely and accurate information to the public. With a keen eye for detail and a dedication to journalistic integrity, Arya has established himself as a trusted voice in the field of journalism. His work spans across various beats, including politics, current affairs, and human interest stories. Known for his insightful analysis and compelling storytelling, Arya's reporting consistently sheds light on important issues and events shaping our world today. With a commitment to truth and objectivity, he continues to inform and inspire audiences with his work.
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