GOLD PRICE FALL BY 95

Gold prices fell by Rs 95 to Rs 59,505 per 10 grams on Monday, weighed down by a weak global trend. Silver prices also fell by Rs 260 to Rs 60,910 per kg.

The global gold price fell by 0.4% to $1,816.10 per ounce on Monday. The decline in gold prices was due to a stronger US dollar and rising interest rates. The US dollar index, which measures the value of the dollar against a basket of currencies, rose by 0.2% on Monday.

Rising interest rates also weighed on gold prices. Gold is considered a safe haven asset and is often bought when investors are worried about the economy. However, rising interest rates make gold less attractive as an investment because they increase the opportunity cost of holding gold.

In the Indian market, gold prices were also affected by the ongoing sell-off in equity markets. The benchmark Sensex index fell by 1.2% on Monday. This sell-off led to some investors selling gold to raise cash.

Despite the decline in gold prices, analysts expect prices to remain in a range in the near term. They say that gold prices are likely to be supported by concerns about the global economy and the ongoing war in Ukraine.

Here are some of the key factors that could affect gold prices in the near term:

  • The direction of the US dollar. A stronger US dollar will make gold more expensive for buyers in other currencies, which could weigh on prices.
  • The level of interest rates. Rising interest rates will make gold less attractive as an investment, which could also weigh on prices.
  • The global economic outlook. If concerns about the global economy grow, gold prices could benefit as investors seek a safe haven asset.
  • The war in Ukraine. The war in Ukraine is a major risk factor for the global economy and could continue to support gold prices.

Overall, gold prices are likely to remain in a range in the near term. However, the direction of prices will depend on a number of factors, including the direction of the US dollar, the level of interest rates, and the global economic outlook.

Here are some of the implications of the fall in gold prices:

  • Investors who are holding gold may see their investment lose value.
  • The fall in gold prices could make it more affordable for people to buy gold jewelry.
  • The fall in gold prices could also make it more attractive for investors to buy gold-backed exchange-traded funds (ETFs).

The fall in gold prices is a reminder that gold is a volatile asset and its prices can fluctuate significantly. Investors who are considering investing in gold should be aware of the risks involved.

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