Gold prices have declined on Monday. The reason behind this is that the price of gold has been affected strongly in the US dollar.
Gold prices have declined on Monday.
Gold prices have declined on Monday. The reason behind this is that American dollars In has strongly affected the price of gold. Market experts expect the Federal Reserve to meet in December interest rate can be increased by 50 basis points. Due to this, in the last monetary policy meeting of the US central bank, it was indicated to slow down the rate hike.
Gold futures are trading at Rs 53,023 per 10 grams on MCX, down 0.13 per cent or Rs 67. Similarly, silver futures fell by 0.59 per cent or Rs 362 to Rs 61,314 per kg.
Federal Reserve meeting will have an impact
Experts say that gold and silver prices gained momentum last week after US Fed officials said in the November meeting minutes that they would not hike interest rates sharply. US Fed officials had further indicated that the pace of increase in interest rates would be slow. This led to a rise in the dollar index and a decline in US bond yields. Due to this, the prices of precious metals had increased.
Gold and silver also gained momentum due to geopolitical tensions and mixed economic data last week. According to experts, spot gold prices have remained at a higher level than futures. This indicates that the demand for gold is increasing in the near term.
Growth figures in American will also be important
Market experts expect gold and silver to remain volatile this week ahead of US quarterly GDP data and job data. Gold can remain in the range of Rs 52,420 to Rs 52,250. Silver has support between Rs 61,250 to Rs 60,680.
Last week, after being in a decline for some time, there was a spurt in gold prices. By the end of the week, gold was trading with an increase of more than one per cent. At the same time, the dollar, which is considered an alternative to safe haven, saw a jump in China due to the increase in corona cases. The situation in China raised concerns about the future of the global economy. Therefore, gold prices were weak in the beginning of the week.